IRS tax debt relief or forgiveness allows taxpayers who owe unpaid taxes to reduce part of their debt according to their circumstances. While tax debt relief is relatively rare, it’s not impossible, and each case needs to be assessed by a professional to determine whether the person is eligible. The government also has an IRS debt forgiveness program that offers several options to relieve tax debt. The IRS debt forgiveness program was set up to help taxpayers with the complex tax forgiveness process and organize an appropriate debt repayment plan. Here is a quick overview of IRS debt forgiveness.
What is the debt forgiveness program?
Only certain people are entitled to tax debt forgiveness, and each person’s financial assistance needs to be assessed. IRS debt forgiveness applies if the taxpayer can claim extreme financial hardship and if all previous tax returns have been completed.
The IRS debt relief program allows you to avoid high penalties for overdue taxes. Tax debt forgiveness is also better for your credit score in the long run. Because IRS debt forgiveness is an official way of setting up a debt consolidation plan, this will look better on your permanent record.
Who is eligible for the program?
IRS debt relief is for those with $50,000 or less debt. For married couples, tax debt forgiveness is available if their solo income is below $100,000 or $200,000. You can also apply for the IRS debt forgiveness program if you’re self-employed and have experienced at least a 25% loss of income.
Your case needs to be examined to determine your IRS debt forgiveness program eligibility. Tax debt forgiveness will be calculated according to your unique circumstances, along with a payment plan. There are several options for reducing debts to the IRS.
How does the forgiveness plan work?
You must apply for tax debt relief and be accepted into an IRS debt forgiveness program. You must then agree to the terms of your IRS debt forgiveness program. The IRS will continually assess your financial situation to monitor your tax debt forgiveness. You will be given an IRS debt forgiveness payment plan to pay off the total or amended amount in a lump sum or installments.
Find out if you are eligible.
To find out if you’re eligible for relief from taxation, contact a professional tax relief company such as Clean Slate Tax. Our friendly team will be able to provide you with more information on the IRS debt forgiveness program. We understand that every case is different regarding IRS tax debt forgiveness. If you’d like to see if you’re eligible for IRS debt forgiveness, contact us today for a free case review.
What is debt relief?
Debt relief or debt cancellation is the partial or total forgiveness of debt, or the slowing or stopping of debt growth, owed by individuals, corporations, or nations.
What is a tax shield?
A tax shield is an income tax reduction resulting from taking an allowable deduction from taxable income. For example, because interest on debt is a tax-deductible expense, taking on debt creates a tax shield.
Expert Facts On Debt Relief On Taxes
- Tax relief can help you reduce the amount of taxes owed to the IRS.
- You may be able to negotiate a payment plan with the IRS that is more manageable for your budget.
- You may qualify for an Offer in Compromise, which allows you to settle your tax debt for less than what is owed.
- The process of obtaining relief can take several months or even years, depending on your situation and how much money you owe.
- Working with a qualified professional who understands all aspects of tax law and has experience dealing with the IRS is essential.
- Many different tax relief programs are available, so it’s essential to research each one carefully before deciding which one is right for you.
- Other options exist if you don’t qualify for any tax relief program, such as filing for bankruptcy or negotiating directly with creditors.