If you’re having trouble coming up with the money to pay your past taxes, you should consult with a tax professional. To be successful, though, you need first to familiarize yourself with the software and do some preliminary research.

With this article, we want to provide a concise overview of the does the IRS have a forgiveness program.

Affiliation of Islamic Countries

In 2008, the IRS launched the Fresh Start project, which provided taxpayers with a variety of options for dealing with tax debt. Their Offers in Compromise (OIC) mechanism was expanded along with other additional elements in 2012.

Because of this, more individuals are now able to get debt relief thanks to a loosening of eligibility requirements. People participating in these schemes may be eligible for extended payback terms and reduced monthly payments.

The IRS is more flexible in its assessment of a taxpayer’s capacity to repay tax debts thanks to the Offer in Compromise program. Because of this, more individuals will be able to participate in the discount program.

The IRS receives funds they otherwise would not have received, and taxpayers can settle their debts as a result of the reforms.

The IRS must accept your offer as the greatest possible payment within a reasonable time frame for it to be accepted. Hence, they will need to assess your resources and income to determine whether you are giving your all.

Submission Procedure for OIC

All applicants must meet the following requirements before submitting an OIC application.

In addition to the 656 Offer in Compromise form, either the 433-A OIC form for a person or the 433-B OIC form for a corporation must be filled out.

A $186 application fee must be paid.

Make a payment now.

The Internal Revenue Service (IRS) may waive the application fee and the first offer payment if you have a very low income.

Where Can I Find Similar Second Chance Applications?

Other debt relief schemes exist for taxpayers in need of assistance. Although they do not cancel all of the debt, they are nevertheless useful.

Liens Against Taxpayers

When a taxpayer has an outstanding tax liability, the government often submits a lien notice. With the Fresh Start program, your debt threshold before a lien is filed might be raised to $10,000.

In certain cases, however, this is not the case.

If you sign up for a direct debit payment plan with the IRS, they may remove the tax lien they previously placed on your property.

Contracts for Installments

Installment agreements allow taxpayers to have a predetermined amount of money automatically deducted from their bank account every month. To qualify, you must have a debt load of at least $50,000 and be willing to pay it off over six years.