Being Hounded By The IRS?
Ask For Tax Forgiveness!
Don’t let tax troubles keep you on a short leash. With the IRS tax forgiveness program, you may be able to reduce or eliminate your overdue taxes.
What is The Tax Forgiveness Program?
The IRS offers several programs designed to help taxpayers in severe financial distress reduce or, in some cases, eliminate their unpaid tax debt. Collectively referred to here as the Tax Forgiveness Program, these options aim to make repayment more manageable or provide relief when paying the full amount simply isn’t possible.
Common forms of tax forgiveness include:
- Offer in Compromise (OIC) – Allows you to settle your tax debt for less than the full amount owed, based on your ability to pay.
- Partial Payment Installment Agreement (PPIA) – Lets you pay off your tax debt in smaller, affordable installments, potentially for less than the total balance.
- Innocent Spouse Relief – Provides relief from tax liabilities if your spouse (or former spouse) is responsible for the tax issues and you had no knowledge of their wrongdoing.
- Currently Not Collectible (CNC) Status – Temporarily pauses IRS collection actions and payments if you can prove financial hardship. Your tax balance is not reduced or removed, however, unless the collection statute expires while you are in CNC status.
If you don’t meet the requirements for the tax forgiveness program (see below), don’t panic. There are other tax relief options available to help you pay off your back taxes. Most taxpayers will qualify for a payment plan, which allows you to pay over several months or years.
Requirements For Tax Forgiveness
To be considered for tax forgiveness, you generally must:
- Be current on all required tax filings.
- Prove that paying your full balance would create a financial hardship.
- Not have an open bankruptcy proceeding.
- Not be under an active IRS audit.
It’s important to note that meeting all these requirements does not guarantee approval. The IRS evaluates applications on a case-by-case basis. For example, an Offer in Compromise or Partial Payment Installment Agreement may be rejected if the amount you propose is too low. That’s why working with experienced tax professionals – like our team at Top Dog Tax Relief – can make all the difference in getting your request for forgiveness approved.