If you owe taxes to the IRS, you may be eligible for one of the different tax relief options that are available. This is something that a lot of people are unaware of, and it could end up saving them thousands of pounds when it comes to the taxes they currently owe to IRS. With that being said, read on to discover everything you need to know about the IRS Debt Forgiveness Program.
The Debt Forgiveness Program has been implemented by the IRS to provide a number of different relief solutions for taxpayers who have unpaid taxes. Your eligibility for each option will depend on your individual circumstances regarding the debt that has not yet been paid. There are four key options, and we will talk you through each one so you can get a better understanding.
Currently Not Collectible (CNC)
If you are granted this status, you are effectively going to be given a clean slate when it comes to your taxes. This is suitable for anyone who is able to prove that they are not going to be able to pay back the tax debt that they owe.
Offer in Compromise (OIC)
If you are able to pay back some of your taxes, but you cannot pay the full sum, this is an option that is worth considering. This is a settlement solution that will qualify some taxpayers to pay a lower sum than what they would typically owe to the IRS. You will, therefore, be able to write off a portion of your debts by going for this option.
Innocent Spouse Relief
This is an option to consider if you have been the victim of tax inaccuracies or fraudulent activities. If you are eligible for this relief, you will not receive penalties that have happened as a consequence of something that you know nothing about. Unfortunately, we are seeing the number of tax fraud cases around the world rise year-on-year, as hackers are criminals get more sophisticated. Therefore, this relief has been put in place to protect individuals who have been the victims of such scenarios.
Installment Agreements (IA)
The final option is the most popular of them all. If you are not able to pay your entire tax debt in full, you can set-up an agreement to pay off your debt in monthly amounts. The typical repayment period that is offered by the IRS for this solution is 72 months. Please note that this option is only going to be available for those individuals who owe less than $50,000 in terms of combined penalties, tax, and interest.
So there you have it: everything you need to know about the IRS Debt Forgiveness Program. We hope that this has helped to give you a better understanding. If you would like to know more about this program and whether or not you will be eligible, all you need to do is contact Creative Tax Solutions. Working with professionals is the best way to ensure you are making the most of the opportunities that are available to you when it comes to managing your taxes.
