What is the process for getting tax debt relief?

IRS tax debt relief or forgiveness allows taxpayers who owe unpaid taxes to reduce part of their debt depending on their circumstances. While tax debt relief is relatively rare, it is not impossible and each case must be evaluated by a professional to determine if the person is eligible. The government also has an IRS debt forgiveness program that offers several options for alleviating tax debt. The IRS debt forgiveness program was created to help taxpayers with the complex process of tax forgiveness and organize an appropriate debt repayment plan.

Here's a brief summary of IRS debt forgiveness. To see if you qualify to settle your tax bill for less, see the IRS Commitment Offer page. You can also use the online commitment offer prequalifier to confirm your eligibility and prepare your preliminary proposal. If you hire an accredited tax relief company to work on your behalf, they may contact the IRS to try to negotiate a compromise offer, an installment agreement, or a reduction in penalties or interest.

Sometimes, the IRS will consider reaching an agreement that will allow you to pay a reduced amount of what you owe in back taxes, which is called an offer of commitment. You must convince the IRS that you cannot pay what you owe and offer to pay the reduced amount in a lump sum or in short-term installments. If you owe back taxes, you may be able to repay your debt with an installment agreement. An installment agreement is a payment plan that allows you to pay off your debt over time.

This may be a good option if you can't pay your taxes in full. For example, you can view most of the items on your tax returns processed over the past three years, or get basic data such as your marital status, how you paid, and your adjusted gross income for the current tax year and up to the last 10 years. The IRS often doesn't know what tax deductions or credits you might have qualified for, making the bill higher than what you could have received if you had done it yourself. In this context, relief refers to certain programs or options that help taxpayers who cannot pay their taxes or who have overdue or overdue tax bills to manage, settle, or even settle their tax debt or back taxes.

Victims of natural disasters, such as hurricanes and wildfires, are sometimes also offered special tax relief. Since debt forgiveness from the IRS is an official way to establish a debt consolidation plan, this will be best seen on your permanent record. Between installment agreements, compromise offers, and other settlement alternatives, taxpayers can be trapped in a complicated world of confusing concepts and end up being rejected by a debt relief program that a tax professional would have obtained approval from. Tax relief really means setting up a payment plan or negotiating an agreement with the IRS; it's not about erasing your tax liability.

To find out if you qualify for tax relief, contact a professional tax relief company, such as Clean Slate Tax. You should consult a certified tax resolution specialist or a lawyer specializing in tax debt relief to review your options and negotiate a payment plan with the IRS. The IRS debt forgiveness program is a way for taxpayers who owe money to the IRS to pay their debts in a more manageable way. But don't delay; you only have three years from the due date of the original tax return to request refunds of old taxes.

According to the IRS, it may be an option if you can't pay your tax debt at all or if doing so creates financial hardship...

Lorraine Cernota
Lorraine Cernota

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