IRS tax debt forgiveness programs can help you if you find yourself overwhelmed with owing the IRS a lot of money and you are finding it difficult to deal with the constant calls or letters from the IRS. Some people opt for this option when they find that the IRS Debt Relief is asking for a large amount of money in back taxes that they cannot pay. Some people get scared and some try to ignore the IRS because they are not sure what would happen if they talk to them directly. What you need to understand is that the IRS cannot ask for money from you unless you are guilty of criminal tax evasion, fraud, or another such crime.
If you are a citizen of the United States, you have certain rights granted by the IRS to settle your tax debts. One such right is the Right of Veto. You may use this right to stop any IRS collection efforts that you feel are unfair and unjust. If you are not eligible for IRS tax debt relief due to your poor financial status, you may also use this right to request for a fresh start. You just have to convince the IRS that you can no longer afford your payments. In order to qualify for this relief, you must provide documented proof of your poor financial condition.
There are several ways through which you can use to qualify for IRS tax debt forgiveness. First, you can go through an IRS audit. You must be audited if you owe more than seven hundred dollars in unpaid taxes. You must be informed about the charges that the IRS will be charging against you if you fail to pay your taxes in full. Audits are conducted randomly, so you do not know whether or not you will qualify for relief from IRS debt until you are given the notice.
The second way through which you can qualify for IRS tax debt relief is to prove that you cannot afford your monthly dues. You can show to the IRS that you don’t have enough money to pay your bills. You can file for bankruptcy as a way of proving your inability to pay the taxes.
Another option for IRS tax debt forgiveness is to negotiate with the IRS. If you cannot afford to settle your debt in full, you can use the IRS’s Offer in Compromise. This is offered to taxpayers who can’t pay their full amount owed. It requires the taxpayer to settle the total amount owed in exchange for a payment plan. The IRS calls this a “compromise”.
If you can’t reach an Offer in Compromise with the IRS, you may consider using the Installment Agreement. Installment Agreements is a payment plan where you pay a small monthly fee and agree to pay a certain amount by installment. If you can’t afford to settle your debt in full, you can choose to use the Installment Agreement. This is the best choice for those who can’t afford to pay their full amount owed.