a person calculating their tax debt

Does the IRS Forgive Tax Debt?

If you are dealing with overwhelming tax debt that you’re having trouble paying off, you might be wondering if the IRS can forgive your tax debt. Although the IRS rarely forgives tax debts, there are options available to help you become tax debt-free. Our Tampa tax attorneys explain what options are available for you if you have tax debt.

If you’re dealing with overwhelming tax debt, our Tampa tax attorneys can help you get tax debt relief. Contact our team today at (813) 295-7648 to schedule a consultation!

Installment Agreements

An installment agreement allows you to repay the money you owe to the IRS in installments. An installment agreement does come with interest and penalties, but it’s a great option to help people get rid of their tax debt. Below we explain the four different types of installment agreements the IRS provides:

  • Guaranteed Installment Agreement: A guaranteed installment agreement is an option for you if you owe less than $50,000, have never been in an installment agreement before, and the amount owed will be paid off within three years.
  • Streamlined Installment Agreement: Similar to the guaranteed installment agreement, but the amount owed must be paid within 72 months.
  • Partial Payment Installment Agreement: This is an agreement for partial payment of the amount owed.
  • Non-Streamlined Installment Agreement: This is an option for taxpayers who owe more than $50,000, so they must propose a repayment plan with the IRS.

Offer In Compromise

An offer in compromise is another option to help people dealing with overwhelming tax debt. An offer in compromise allows you to make a deal with the IRS to clear your tax debt by paying a fraction of its value. With this option, the IRS does forgive a portion of your tax debt. However, these agreements are hard to strike with the IRS, and it is even harder to get a great deal that you can realistically afford. For such reasons, it is vital to have an experienced tax attorney on your side to help you get the best possible results.

The IRS considers various things to determine if you qualify for an offer in compromise:

  • Your ability to pay the offer in compromise
  • How much money you’re making
  • What your current expenses look like
  • How much equity you have tied up in assets and property

Don’t face your tax debt alone. Contact our Tampa tax attorneys today at (813) 295-7648 to schedule a case review!