What Is the IRS Debt Forgiveness Program?
If you owe money in back taxes, you are probably overwhelmed by the financial ramifications of paying back that money. If you really don’t have the funds to pay off your back tax debt, you might qualify for the IRS Debt Forgiveness Program. But what is the IRS Debt Forgiveness Program, and how can it help you?
What Is Debt Forgiveness, and How Can it Help?
Debt forgiveness is when the IRS agrees not to collect the back tax debt you owe, and instead those taxes are forgiven. In other words, they wipe your slate clean and forget about the money you owe them.
They don’t do this for just anyone, or they would never receive payment again. They only forgive tax debt if it would cause you a financial crisis if you paid your tax bill. The IRS also offers many programs that help taxpayers who can’t pay their entire tax bill but might be able to pay some of it.
For instance, you might not qualify for complete debt forgiveness, but you might be able to qualify for an offer in compromise (OIC). An OIC allows you to reach a settlement agreement with the IRS in which you pay only part of your bill and the rest of your tax debt is forgiven.
Other Programs Might Be Able to Help
You may not qualify for total debt forgiveness, but chances are you will qualify for a program the IRS offers that could help you. A nationwide tax specialist can examine your tax debt situation to see what program might be able to help you.