What Exactly Is IRS Debt Forgiveness?
Having problems with IRS taxes? Let Hutton Tax Solutions help you with the IRS debt forgiveness program.
IRS Debt Forgiveness Program
The IRS debt forgiveness program is a tax relief program the IRS offers to American households that no longer can afford to pay their federal income taxes. Because of the financial hardship they face, many people don’t even consider there might be a way out, or generally, a more efficient way to deal with their tax liability, such as negotiating back taxes.
The IRS Debt Forgiveness Program is a set of guidelines that the Internal Revenue Service (IRS) uses to determine if they will forgive some or all of a taxpayer’s debt. While the program is rare, it could be an option for those facing mounting tax debt.
Taxpayers must first demonstrate that they cannot fully pay their tax debt and submit a financial statement outlining their assets and income. The IRS may forgive some of the debt depending on the taxpayer’s financial situation.
If the IRS forgives some of the debt, it will reduce the amount owed, extend the payment deadline, or both. However, the IRS is not required to forgive any debt and may pursue other collection options, such as wage garnishment or tax liens.
How To Apply For IRS Debt Forgiveness
To apply for the IRS Debt Forgiveness Program, taxpayers must complete Form 656-B, Offer in Compromise, and submit it to the IRS along with a financial statement, providing detailed information about their assets and income. Your financial statement must be submitted along with an authorization form that allows the IRS to review it.
If the IRS decides to forgive some of your debt, they will set up a payment plan for you.
Contact Hutton Tax Solutions at (405) 494-2848 for a free consultation on your case and get tax tips.
IRS TAX DEBT FORGIVENESS PROGRAM Eligibility Criteria
In general, IRS debt forgiveness is reserved for taxpayers who:
Have a total tax debt of $50,000 or less
Have a total income of $100,000 or less (or $200,000 or less for married couples)
Are self-employed and have experienced a 25% or more drop in income
It can be overwhelming to apply for IRS forgiveness. At Hutton Tax Solutions, our experienced tax professionals can explain the program requirements to you.
IRS DEBT FORGIVENESS PROGRAMS
Various IRS debt forgiveness programs are available, all thanks to the Fresh Start Initiative.
Some of the other programs that the IRS offers include:
- The Offer in Compromise Program: This program allows taxpayers to settle their tax debt for less than the total amount owed.
- The Currently Not Collectible Status Program: This program allows taxpayers to have their tax debt temporarily placed on hold.
- The Installment Agreement Program: This program allows taxpayers to pay their tax debt over time.
- The Partial Payment Installment Agreement Program: This program allows taxpayers to make smaller payments over time.
Our team of tax professionals at Hutton Tax Solutions can help you determine which program suits your unique situation and help you take advantage of all the tax relief options available. Contact us today for a free consultation.
HIRING AN EDMOND OK TAX PROFESSIONAL
The IRS Debt Forgiveness Program is a complex tax relief option. If you’re struggling to pay your taxes, it’s essential to seek professional help.
We have a team of tax professionals at Hutton Tax Solutions. They can help you understand the program and determine if you qualify. We can also help you navigate the application process and ensure that all the required documentation is submitted.
If you owe money, we understand the financial stress you may be experiencing. That’s why we’re here to help. Contact us today for tax help and to learn how we can help you get the tax debt relief you need.