What Is the IRS Debt Forgiveness Program? IRS Debt Help?
Even the IRS understands “stuff happens” happens. That’s why the agency offers IRS debt forgiveness (IRS debt help) when you can’t afford to pay your tax debt.
Remember this, the IRS has 2 goals: collect money and close cases. Under certain circumstances, taxpayers can have their tax debt dramatically or partially forgiven. When the IRS considers forgiving your tax liability, they look at your present financial condition first. This means the IRS can’t collect more than you can reasonably pay. If any collection action would force you into a financial crisis where you lose all sense of financial security, the IRS can’t collect your tax debt.
Know What You Owe – Know What You Qualify For
Before applying for IRS programs, find out how much in taxes you owe to the IRS. Knowing what IRS forgiveness programs you qualify for and how much you currently owe is vital when it comes to asking for IRS forgiveness.
There are many different ways to find out how much you owe, including checking online through the IRS’s new portal, calling the IRS, mailing the IRS a form, or having a tax professional do the research for you. The advantage to having an tax professional look into your IRS problem is this: the IRS won’t be asking you questions which you would be obligated to answer. No matter how you figure out how much you owe in back taxes, you’ll need to know before seeking forgiveness.
The IRS has many many rules. How much you owe is among the different rules that they have. It is important to know how much the tax debt is in order to to attack the IRS problem.
Be on the Lookout for IRS Collection Actions
If you can’t pay but you haven’t reached out to the IRS for forgiveness or assistance, you should still expect them to begin taking collection actions against you. These actions can range from seemingly benign, like loads of notices in the mail, to very aggressive, like private debt collection agencies getting involved and tracking you down. You could also find that your passport is at risk due to tax debt.
Some of the IRS’s often-used collection actions include:
Tax Lien – Federal Tax Lien – A tax lien is an IRS claim against your property, which will secure their interest in your assets if you fail to pay your tax debt. It’s kind of like “an insurance policy.” It is what we call a “passive collection.” Unlike a tax levy, a lien doesn’t mean your property will be taken immediately. However, you’ll still need to address the tax lien. Not only can a tax lien keep you from selling your property, but it can also snowball into a more aggressive action in the future. Once again, depending on how much the tax debt is, tax liens are regulated by the tax debt owed.
Tax Levy – IRS Garnishment – Bank Levy – Wage Garnishment
A tax levy is the agency authority to legally seizure of your property to satisfy your outstanding unpaid tax debt. You should have been sent a notice of levy from the IRS, which will let you know that they are planning to pursue levying actions against you.
A tax levy can be placed on personal property like your home, car, or boat. They can also be placed on your assets, like your bank funds, tax refunds, and wages.
A Wage garnishment is a type of tax levy in which the IRS will take part of your income in order to settle your existing tax debt. The IRS will order your employer and will continue garnishing your wages until your tax debt is paid or other arrangements are made to pay your tax debt.
Pay Less Than You Owe with Offer in Compromise
After paying your “allowable expenses” (everyday expenses), if it can be shown that you cannot pay the entire tax debt, you should apply for the IRS government payment plan called an Offer in Compromise (OIC) to settle your tax debt. Depending on your financial capacity and upon acceptance, the IRS significantly reduces the total debt that you can pay. This reduced amount can be paid in a lump sum or in fixed monthly payments.
The tax professionals at Flat Fee Tax Relief, have a 96% Offer in Compromise approval rate. while the IRS overall approval rate is approximately 42%. Our team members know how to shepherd an Offer in Compromise submission toa successful conclusion.
The IRS considers your ability to pay, income, expenses, and asset equity when determining your eligibility for an OIC. While it can be a life-changing tax resolution for many people, the IRS doesn’t give an Offer in Compromise easily.
See If You Qualify for the
IRS Fresh Start Initiative
To make it easier for taxpayers to qualify for an OIC, the IRS has expanded their Fresh Start Initiative.
These changes to the Fresh Start initiative make it easier to afford your IRS tax payments. Now, you won’t have to disclose extensive financial details to the IRS to judge your paying ability.
- Instead of looking at five years of future income to determine reasonable collection potential, the IRS now looks at only one to two year of future income for offers, depending on the payment period.
- Taxpayers are now allowed to make their student loan minimum payment for post-high school education loans guaranteed by the federal government.
- Taxpayers may, under certain conditions including financial hardship, pay delinquent federal and state or local taxes in monthly installments if they cannot pay it in full.
- The IRS has expanded the Allowable Living Expense standards. This allowance now includes credit card payments, bank fees and charges, and other various allowances.
- The IRS has doubled the dollar threshold for taxpayers eligible for Installment Agreements, which will help more people qualify.
The tax professionals at Flat Fee Tax Relief has been providing valuable IRS tax debt help at very a very affordable fee for more than a decade. Our teams are strategically located in Clearwater, Florida, and San Diego, California which allows us to be available to our clients and the IRS from 8 A.M. Eastern to 6 P.M. Pacific time.
NOW IT’S ALL UP TO YOU.
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