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 fairly rare, it’s not impossible, and each individual case needs to be assessed by a professional to determine whether the person is eligible. The government also has an IRS debt forgiveness program in place which offers several tax relief options. The IRS debt forgiveness program was set up to help taxpayers with the complex process of tax debt forgiveness and to organize an appropriate debt repayment plan. Here is a quick overview of IRS debt forgiveness.
What is the debt forgiveness program?
The IRS debt forgiveness program is an initiative set up by the Internal Revenue Services to facilitate repayments and to offer tools and assistance to taxpayers that owe money to the IRS.
Only certain people are entitled to tax debt forgiveness, and each person’s financial situation 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 a debt of $50,000 or less. Tax debt forgiveness is available if your solo income is below $100,000, or $200,000 for married couples. 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.
In order to find out if you’re eligible for the IRS debt forgiveness program, your case needs to be examined. Tax debt forgiveness will be calculated according to your unique circumstances, along with a payment plan. There are several options for IRS debt forgiveness.
How does the forgiveness plan work?
You will need to 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. In order to monitor your tax debt forgiveness, the IRS will continually assess your financial situation. You will be given an IRS debt forgiveness payment plan to pay off the full or amended amount in a lump sum or installments.
Find out if you are eligible
To find out if you’re eligible for tax debt relief get in touch with 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 when it comes to IRS tax debt forgiveness every case is different. 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 the reduction in income taxes that results 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.