IRS One Time Forgiveness: Does It Apply to You?
Have you heard offers on TV or online promising to eliminate all of your tax debt? Have you wondered if these promises could be real or are they just too good to be true? In reality, while no formal debt forgiveness plan actually exists, you might actually qualify for significant assistance from the Internal Revenue Service (IRS) that can help you get a clean slate where your taxes are concerned? Success Tax Relief is a full service tax firm that can help determine whether you meet these criteria. Here are some of the instances where taxpayers may be able to get out from under their tax debt for much less than they owe.
Can Your Tax Debt Be Forgiven
- How old is the tax debt? If your tax debt is more than 10 years old and the IRS has not made attempts to collect, then the statute of limitations has passed and you will not have to pay your back taxes. That is correct—the IRS has up to 10 years to collect from taxpayers and if they exceed this timeframe, they are not legally allowed to collect.
- Offer in Compromise: The IRS understands that there are instances in which they will not be able to collect the full amount a taxpayer owes. If you have a low income or have a significant financial hardship, you may qualify for an offer in compromise, which allows you to settle your tax debt for less than what you actually owe. There is an application process for this and you must be able to prove that you are unable to pay the full amount due, but the recent IRS Fresh Start Initiative has made the application process much easier.
- Non-collectible status: This is another program for those who cannot afford to pay their tax debt. If the IRS agrees that you cannot pay your living expenses and your tax debt, it could place your account in non-collectible status, meaning you will not receive letters and they will not place levies on your property for a certain period of time.
- Bankruptcy: If you have filed Chapter 7 bankruptcy, then the IRS is also not allowed to pursue collection.
- Other IRS Fresh Start Programs: As previously mentioned, the IRS recently launched the Fresh Start Program, which can benefit many taxpayers. An installment agreement can help taxpayers pay their debt over time rather than in one large lump sum. If you qualify for an installment agreement, you are still responsible for the full amount owed, but you make monthly payments on your debt over the course of several years, depending on your agreement.
Get Out From Under Tax Debt
Success Tax Relief understands that feeling the burden of tax debt can be overwhelming and stressful. Our team works with taxpayers all over the country to find the best path forward, minimizing the impact on your overall financial future. For more information about our team, our services, or to see if you might qualify for a program that helps you get out from under tax debt once and for all, call us at 877-825-1179 or contact us online for a free consultation.