Is There A One-time Tax Forgiveness?
The vast majority of people who owe back taxes to the IRS may be eligible for tax forgiveness, or the cancellation of their tax debt. The IRS Fresh Start Program was created to help taxpayers with a one-time Tax Forgiveness and a simplified process to resolve unpaid taxes.
Generally, this program grants individuals forgiveness if they demonstrate significant financial hardship and can agree to terms involving repayment of the remainder. Depending on the circumstances, this could include an Offer in Compromise (OIC), wherein a percentage of the debt is offered as full payment instead of collection attempts by the government.
In addition, Installment Agreements have become much more lenient as part of this refreshed forgiveness policy, allowing individuals to create an affordable schedule for paying their tax debt off over time. It is important to note that not everyone will qualify for these programs based on income guidelines and eligibility requirements, but even those who don’t may find other forms of relief available instead.
Regardless, speaking with a knowledgeable tax professional is your best bet for finding out what your options are when trying to determine if there is a one-time tax forgiveness option available to you.