Does the IRS offer debt forgiveness?

The IRS has expanded their Fresh Start initiative, which makes it easier to afford your tax payments with IRS debt forgiveness. That’s why the government offers IRS debt forgiveness when you can’t afford to pay your tax debt. Under certain circumstances, taxpayers can have their tax debt partially forgiven.

Can the IRS garnish your savings account?

An IRS levy permits the legal seizure of your property to satisfy a tax debt. It can garnish wages, take money in your bank or other financial account, seize and sell your vehicle(s), real estate and other personal property.

Can the IRS settle my taxes for less than what I owe?

Yes – If Your Circumstances Fit. The IRS does have the authority to write off all or some of your tax debt and settle with you for less than you owe. This is called an offer in compromise, or OIC. In fact, there are more than 16 million individual taxpayers who owe the IRS – but in 2017, only 25,000 got an OIC.

When to negotiate a settlement with the IRS?

If the amount you owe is less than $5,000, you probably should try to negotiate your tax bill with the IRS directly to arrive at an offer amount. Although tax relief firms are valuable to have on your side when negotiating a settlement amount with the IRS, their cost can outweigh the savings they generate when dealing with small tax debt clients.

How to reduce the amount owed to the IRS?

You have the choice to represent yourself as you bargain with the IRS to reduce your amount owed. Or you can partner with tax resolution companies like Community Tax. Tax resolution companies employ expert CPAs and attorneys to help you reduce the amount you owe to the IRS.

Can you settle your taxes with an offer in compromise?

An offer in compromise allows you to settle your tax debt for less than the full amount you owe. It may be a legitimate option if you can’t pay your full tax liability, or doing so creates a financial hardship. We consider your unique set of facts and circumstances: Ability to pay;