Understand IRS Debt Forgiveness Program

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What life could bring next is unpredictable. When you fall under such a crisis that you cannot afford to pay the tax debt, the government offers back tax forgiveness. The tax debt of taxpayers is partially forgiven under certain circumstances. IRS decides to forgive the tax liability, only after looking at the payer’s present financial condition. In other words, the IRS cannot collect more than reasonable pay. When any collection action forces you to lose your financial security, the IRS cannot collect the back taxes. 

Know What You Owe

Before you apply for the IRS program, figure out how much you owe and where you stand currently. This is vital when you asking for IRS forgiveness. To know how much in taxes you owe, either check online through the IRS portal, mail a form to IRS, and ask a tax professional to do research on your status. 

Lookout for IRS Collection Actions

If you cannot pay the tax but haven’t asked for forgiveness or assistance from the IRS, you can expect them to take collection actions against you. Either they would send multiple notices in your mail address or hire a private debt collection agency to track you down. Also, you can put your password at risk.

Pay Less With a Compromising Offer

You have resources with which you can pay the partial amount, you are still saved. You can apply for Offer in Compromise (OIC) under the IRS government payment plan to resolve the due amount to be paid. Depending on your financial status and acceptance to the plea, the IRS reduces the total debt to be paid. This amount can be paid either in a lump sum or in fixed monthly payments.

Check If you qualify for the IRS Fresh Start Initiative

IRS has expanded an initiative that allows taxpayers to quality for OCI easily. 

Comments

  1. Micheal AlexanderDecember 21, 2019 at 11:42 AM

    Very informative and impressive post you have written, this is quite interesting and i have went through it completely, an upgraded information is shared, keep sharing such valuable information. Tax Forgivenesss Jackson

    ReplyDelete

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