IRS Tax Help | Does the IRS Offer Tax Forgiveness? | Flat Fee Tax Service
Updated: Jun 28, 2019
IRS TAX FORGIVENESS - IRS TAX HELP
Close to twenty million taxpayers have an IRS tax problem and a million taxpayers owe the IRS money at any given time. While the IRS makes earnest attempts at collecting each and every penny owed to the government, in reality it does not have the resources to pursue each individual debtor. It is for that reason alone that makes it possible for a struggling taxpayer to receive IRS tax relief and settle their tax debt.
IRS collections and enforcement will be extremely stressful.
In order to manage their collection of tax debt and to extend a bit of mercy to taxpayers, the IRS is willing in some cases to relinquish its claim to a debt. If you owe back taxes, you could escape paying the amount in full by taking advantage of one of these IRS tax relief options.
Tax Debt Forgiveness
Some late night commercials blast out promises of getting your tax debt forgiven, even if you owe thousands of dollars to the IRS.
In fact, your tax debt could be wiped out if your financial situation meets certain guidelines. As an example, the IRS by law cannot collect on a tax debt for more than ten years from the date of assessment.
If you have owed the IRS for a tax debt for at least 10 years or more, your back taxes will be forgiven because the government cannot legally collect on the amount.
Also, the IRS will not collect on a debt that has a low Realistic Collection Potential, or RCP. An IRS tax debt is said to have a low RCP if the debtor:
1. Is low-income
2. Has no meaningful assets like bank accounts or real estate that can be seized and liquidated
3. Has no way to make payments on the amount of tax debt owed.
If you meet any of these criteria, your own tax debt could be labeled as "uncollectible" (#currentlynotcollectible). While not technically forgiven, the IRS typically will not make any attempts to collect on what you owe it.
CURRENTLY NOT COLLECTIBLE
Being placed in to Currently not Collectible (#currentlynotcollectible) status prevents the IRS from collecting on a tax debt. This status means that you do not have the money or assets to pay what you owe. The Currently not Collectible program was designed to give taxpayers time to earn higher incomes or come up with the money to pay their debts.
However, this status in some cases runs down the proverbial clock (Statute of Limitations) for how long the IRS can collect on your tax debt. Once your Currently not Collectible account hits the ten year mark, the IRS can no longer demand that you to pay your owed taxes.
If you are placed in to Currently not Collectible status, the IRS will file a Federal Tax lien against you and this may affect your credit rating.
The IRS is unable to pursue collection activity against a taxpayer who files for Chapter 7 bankruptcy. In rare cases, bankruptcy will allow for the forgiveness of tax debts.
30 DAYS AFTER DISMISSAL OR DISCHARGE OF A BANKRUPTCY, THE IRS WILL IMMEDIATE RESUME COLLECTION ACTIVITY. Even while the case is pending, the IRS cannot contact you or make an attempt to collect on what you owe. If the court rules that your debt must be forgiven, the IRS likewise cannot pursue any future action against you for that amount.
Offer in Compromise
The Fresh Start Program
The Offer in Compromise (#offerincompromise) option exists and is most commonly utilized when people want to have what they owe entirely forgiven. The Fresh Start Initiative criteria for getting a tax debt entirely erased will be complicated and very time consuming.
When you want to settle with the IRS in a more timely manner, you may select an IRS tax relief option that exists under the IRS Fresh Start Program. The Partial Payment Installment Agreement option is the most commonly utilized under this program. The PPIA allows you to make payments on your account until it is paid off in full or you have paid on the debt for 10 years, whichever comes first. You also could pursue an Offer in Compromise.
THE IRS TAX RELIEF TEAM AT FLAT FEE TAX SERVICE, INC. HAS A
90% IRS SETTLEMENT SUCCESS RATE
This Offer in Compromise option allows you to settle your debt for less. You could be granted a successful Offer in Compromise (OIC) if you:
Are in full compliance with the IRS (your tax returns have been filed)
Owe a new tax debt debt
Have no plans or cannot file for Chapter 7 bankruptcy
Do not have the assets / income to pay your tax debt.
You can file for an Offer in Compromise (OIC) on the IRS website, which we do not recommend, or allow a tax professional like the IRS Tax Attorneys at Flat Fee Tax Service, Inc. to prepare your Offer in Compromise and guide you through the IRS settlement process.
CALL FLAT FEE TAX SERVICE FOR YOUR IRS TAX RELIEF CONSULTATION.
1-866-747-7435 With more than one million people owing it money, the IRS realizes that it cannot collect on every delinquent account.
You can have your own IRS tax debt settled or eliminated by exploring these debt relief options.