#irs debt forgiveness
Home Blog What is the IRS Debt Forgiveness Program?
Under certain circumstances, taxpayers can have their tax debt partially forgiven. When the IRS considers forgiving tax debt, the present financial condition of the taxpayer is of primary importance. The IRS cannot collect more than a taxpayer can pay. If any collection action by the IRS would force a taxpayer debtor into a financial crisis, the IRS cannot collect the back taxes.
Taxpayers that have the resources to pay only a partial amount of their tax debt can apply for the IRS government payment plan called an Offer in Compromise (OIC) to resolve the remainder. According to the financial capacity of the taxpayer, the IRS significantly reduces the total debt to an amount that the taxpayer can pay. The reduced amount can be paid in a lump sum or in fixed monthly installments.
To make it easier for taxpayers to qualify and use the OIC, the IRS has expanded their Fresh Start initiative. Under the new, more flexible rules, taxpayers do not have to disclose extensive financial details to the IRS to judge their paying ability. The Fresh Start initiative for OIC offers taxpayers the following advantages: