IRS Debt Forgiveness Program (2024)

Do you need IRS Debt Forgiveness in 2024?

Find out if you qualify for the IRS Debt Forgiveness Program today. Talk to a tax debt forgiveness expert or use the calculator to see how much you can save.

Millions of Americans find themselves owing the IRS back taxes – often many years of back taxes. The stress of being in debt to the IRS and unable to pay can be quite overwhelming. There are also some hefty consequences:

garnished wages
levied bank accounts
tax liens on property

Thankfully, there are options to help you get out from under the weight of IRS debt. The IRS Debt Forgiveness Program may be the answer to your difficult tax situation.

What Is The Tax Debt Forgiveness Program?

The IRS debt forgiveness program is a way for taxpayers who owe money to the IRS to repay their debts in a more manageable way. The program offers tools and assistance to help taxpayers find the best way to repay their debts, and it also provides a way for taxpayers to get relief from penalties and interest charges.

The IRS offers a tax debt forgiveness program for taxpayers who meet certain qualifications. To be eligible, you must claim extreme financial hardship and have filed all previous tax returns. The program is available to certain people only, so contact us to find out if you qualify.

Know Your Options

If you cannot pay your taxes in full and don’t know how to begin paying back what you owe, contact us for a free consultation.

For over 13 years, our team of federally licensed & enrolled agents, tax attorneys, and accountants have all worked toward the common goal of tax resolution services with both the IRS and state tax authorities.

We Help With:

Tax Levies & Liens
Wage Garnishment
Asset Seizure
IRS ‘Fresh Start’ Qualification Assistance
Offer in Compromise
Currently Non Collectible Status
Statute of Limitations Enforcement
Filing Returns for Unfiled Years
IRS Audit Defense
Business & Personal Taxes

Eligibility

If you owe the IRS at least $10,000, then Tax Law Advocates can help you. There are many different options when it comes to debt settlement and repayment plans. Eligibility for each option is determined on a case-by-case basis. Because the IRS judges each case individually and negotiates each case individually, it is critical to work with experienced tax professionals.

Don’t settle for a tax resolution that requires you to pay more than you have to. Let our experienced team help you get the best terms possible.

How To Get Rid Of IRS Debt

Currently Non-Collectible Status

If you cannot pay your taxes, the IRS may place you in Currently Non-Collectible Status. This means that the IRS will not actively try to collect the money you owe from you. However, this does not mean that your debt is forgiven. The interest and penalties will continue to accrue, and the statute of limitations will reset.

If you are in Currently Non-Collectible Status, the IRS may require you to file a financial statement. This statement will show the IRS your current income and expenses. The IRS will use this information to determine if and when they can begin collecting from you again.

Installment Agreements

If you owe back taxes, you may be able to pay down your debt with an installment agreement. An installment agreement is a payment plan that allows you to pay your debt over time. This can be a good option if you cannot pay your taxes in full.

The downside of an installment agreement is that it will not stop the accrual of interest and penalties. You will also be required to pay a setup fee. The IRS may also file a Notice of Federal Tax Lien, which can damage your credit score.

It is critical to remain diligent with your payments once your payment plan request is approved. The IRS does not object to revoking installment agreements in cases where taxpayers do not abide by the terms.

Offer in Compromise

Another option is to try to settle your IRS debt for less than you owe through the Offer in Compromise program. An offer in compromise (OIC) can be used if you can’t pay your tax debt. An OIC is an offer by which a taxpayer can pay less than the amount they owe the IRS.

The government will accept an OIC request if one of the following three circ*mstances applies:

There is doubt as to the collectibility of the tax debt.
The amount offered represents the most that can be collected from you, given your ability to pay.
Collecting the full amount of the tax debt would create a financial hardship for you or your family.

If your OIC is accepted, you will be expected to pay a non-refundable deposit. The amount of your deposit will depend on the payment method you choose and how much you owe. There are three ways to pay off an offer in compromise:

Lump Sum Cash – You pay the entire amount of the offer with one payment.
Short-Term Payment Plan – You agree to pay the amount of the offer in five or fewer payments.
Deferred Payment Plan – You agree to pay the amount of the offer in more than five payments.

No Guarantees

IRS debt forgiveness programs are difficult to set up on your own. Between installment agreements, offers in compromise, and other settlement alternatives, taxpayers can get bogged down in a complicated world of confusing concepts and end up being rejected for a debt relief program that a tax professional would have gained approval for.

Tax Law Advocates has a proven track record of getting IRS debt forgiveness approved and assisting clients to significantly reduce their unpaid balances by using appropriate debt relief strategies. We have the skills and experience to get IRS debt forgiveness proposals accepted quickly and efficiently. Our debt relief proposals are individually designed with your unique situation in mind.

When each case is different, and there’s no guarantee that your debt will be forgiven, doesn’t it make sense to work with someone who’s been there before and navigated the tricky waters of IRS debt relief? If you think that you may be eligible for the IRS Tax Debt Forgiveness program, contact Tax Law Advocates for a consultation.

References and Resources

IRS Offer in Compromise details at IRS.gov
Taxpayer Advocates – learn more

FAQs

Who qualifies for IRS debt forgiveness? ›

The IRS offers a tax debt forgiveness program for taxpayers who meet certain qualifications. To be eligible, you must claim extreme financial hardship and have filed all previous tax returns. The program is available to certain people only, so contact us to find out if you qualify.

Get More Info Here ›

How do I ask for forgiveness from the IRS? ›

If we cannot approve your relief over the phone, you may request relief in writing with Form 843, Claim for Refund and Request for Abatement. To reduce or remove an estimated tax penalty, see: Underpayment of Estimated Tax by Individuals Penalty.

Explore More ›

How do I get the IRS to write off my debt? ›

Generally, to deduct a bad debt, you must have previously included the amount in your income or loaned out your cash. If you're a cash method taxpayer (most individuals are), you generally can't take a bad debt deduction for unpaid salaries, wages, rents, fees, interests, dividends, and similar items of taxable income.

Show Me More ›

How much will the IRS usually settle for? ›

How much will the IRS settle for? The IRS will often settle for what it deems you can feasibly pay. To determine this, the agency will take into account your assets (home, car, etc.), your income, your monthly expenses (rent, utilities, child care, etc.), your savings, and more.

Learn More ›

What is the IRS 6 year rule? ›

6 years - If you don't report income that you should have reported, and it's more than 25% of the gross income shown on the return, or it's attributable to foreign financial assets and is more than $5,000, the time to assess tax is 6 years from the date you filed the return.

Discover More Details ›

Can I negotiate with the IRS myself? ›

You have the legal right to represent yourself before the IRS, but most taxpayers have determined that professional help, such as specialized attorneys, accountants, or tax specialists who are experienced in helping taxpayers resolve unpaid tax debts can significantly impact your odds of reaching an acceptable ...

Discover More Details ›

What if I owe the IRS money but can't pay? ›

File your tax return and pay what you can

If you can't pay the full amount of taxes you owe, don't panic. Submit your return on time and pay as much as you can with your tax return. The more you can pay by the filing deadline, the less interest and penalty charges you will owe.

Is there a one time forgiveness from IRS? ›

The IRS doesn't use the phrase one-time forgiveness. Instead, the agency refers to this program as first-time penalty abatement. Other common marketing phrases include the "Fresh Start Initiative" and "IRS Tax Debt Relief Programs".

Learn More ›

What if I owe the IRS and can't pay? ›

They can apply for a payment plan at IRS.gov/paymentplan. These plans can be either short- or long-term. Short-term payment plan – The payment period is 180 days or less, and the total amount owed is less than $100,000 in combined tax, penalties and interest.

Read On ›

Can IRS debt be discharged? ›

Type of Tax Debt

Typically, only income tax debts can be dischargeable in bankruptcy. A tax debt owed for payroll taxes, FICA (Social Security) taxes, and trust fund taxes are not dischargeable through any type of bankruptcy proceeding, including Chapter 7.

Find Out More ›

Do I qualify for IRS fresh start? ›

How To Be Eligible For The IRS Fresh Start Program

You're self-employed and had a drop in income of at least 25%
You're single and have an income of less than $100,000.
You're married and have an income of less than $200,000.
Your tax debt balance is less than $50,000.

Explore More ›

How do I qualify for an IRS hardship? ›

Generally speaking, IRS hardship rules require: An annual income less than $84,000 per year. Little or no funds left over after paying for basic living expenses. Basic living expenses fall within the IRS guidelines.

Get More Info ›

Does IRS tax debt go away? ›

In general, the Internal Revenue Service (IRS) has 10 years to collect unpaid tax debt. After that, the debt is wiped clean from its books and the IRS writes it off. This is called the 10 Year Statute of Limitations. It is not in the financial interest of the IRS to make this statute widely known.

Discover More Details ›

Does settling with the IRS hurt your credit? ›

Taking the step of setting up a payment arrangement with the IRS does not trigger any reports to the credit bureaus. As mentioned above, the IRS is restricted from sharing your personally identifiable information. While a Notice of Federal Tax Lien could be discoverable by lenders, the payment plan itself would not.

Find Out More ›

Are tax relief companies worth it? ›

These companies often advertise they can reduce or eliminate taxes in exchange for upfront fees. But be wary. Some tax relief companies charge thousands to settle past tax debts without actually resolving the tax issues. Before hiring a company, you should do careful research to avoid exorbitant fees.

Does everyone qualify for debt relief? ›

Everyone qualifies for some form of debt relief, but you may or may not qualify for the specific types of relief you're looking for. For example, anyone can create a structured payment plan and achieve debt freedom faster.

How long before IRS debt is forgiven? ›

In general, the Internal Revenue Service (IRS) has 10 years to collect unpaid tax debt. After that, the debt is wiped clean from its books and the IRS writes it off. This is called the 10 Year Statute of Limitations. It is not in the financial interest of the IRS to make this statute widely known.

Explore More ›

How do I know if the IRS will offset my refund? ›

To find out if you may have an offset or if you have questions about an offset, contact the agency to which you owe the debt. We also may have changed your refund amount because we made changes to your tax return. You'll get a notice explaining the changes.

Get More Info Here ›