Tax Debt Forgiveness
If you owe the IRS a lot of money in unpaid taxes, you can likely benefit from a debt forgiveness program. While there are very few instances where the IRS will completely forgive your debt, you may be able to negotiate how much you’re required to repay. The first thing to keep in mind if you’re seeking tax debt forgiveness is that you’ll need to be current with filing your taxes despite the fact that you can’t pay.
Next, working with a tax professional can help you find the best method of debt forgiveness based on your circumstances. Whether you owe $10,000 or over $50,000 there is likely a forgiveness program that will work for you. Community Tax can help you negotiate an installment agreement which allows you to pay back taxes over a six-year period at a rate that you can realistically afford. Or we can work on your behalf to have your taxes deemed currently not collectible due to extenuating circumstances. Taxpayers should note that the IRS may deny a debt forgiveness request if you falsify anything on your Collection Information Statement, have unnecessary living expenses (like frequently purchasing luxury items), or you’ve previously defaulted on an IRS payment agreement. If you are granted IRS debt forgiveness, it shouldn’t affect your credit score. It’s important to keep in mind that, while the IRS only has 10 years to collect unpaid taxes, interest and penalties accrue the entire time which can make your debt much worse.