Financial difficulties allow some taxpayers to qualify for tax debt relief by availing of the IRS Forgiveness Program. Under this program, the IRS offers some kind of debt relief to taxpayers who have financial difficulties and are unable to pay their taxes. People could also have longer repayment periods and low monthly payments under some of the schemes under the IRS Forgiveness program.
If you are wondering as a taxpayer what is the IRS debt forgiveness program then keep reading the article.
As a taxpayer, you have access to a variety of tax debt relief alternatives, and the eligibility for each debt forgiveness program depends on the specifics of your unpaid amount. Below are a few forgiveness and debt relief options.
Payment Agreement Plan in Installments
If you are unable to pay the full amount of tax, an installment agreement enables you to pay less each month. The most typical repayment schedule, however, is a 72-month payment plan, and you can choose this option only if your total debt, plus interest and penalties, total more than $50,000. You can be eligible for the IRS penalty waiver under this scheme by completing form 843.
OIC or Offer in Compromise
This scheme allows you to pay much less than what you owe the IRS and immediately reduces your tax debt.
Currently Not Collectible
This scheme is intended to provide a fresh start for taxpayers who can demonstrate that they are unable to pay their taxes.
How to qualify for a tax forgiveness program?
You should provide the IRS with all essential information, including your social security number, employer identification number, telephone number, name, tax payment methods, withholding certificate, transcript, and taxpayer identification number (TIN) issued by the US government. Once you have submitted your paperwork, the IRS will review it and decide whether to grant your request for debt forgiveness.