What You Need to Know About the IRS Tax Debt Forgiveness Program

Blog Introduction: The IRS offers a tax debt forgiveness program for certain taxpayers who are unable to pay their taxes. This program is called the Offer in Compromise (OIC) program. The OIC program is designed to help taxpayers who cannot pay their taxes and need a fresh start. 

The OIC program is not for everyone. To qualify for the OIC program, you must meet certain criteria. You must also complete and submit an Offer in Compromise application and pay a non-refundable application fee. If you are considering applying for the OIC program, here is what you need to know.

What is the Offer in Compromise (OIC) Program?

The Offer in Compromise (OIC) program is an IRS tax debt forgiveness program that helps certain taxpayers who are unable to pay their taxes. The OIC program is designed to help taxpayers with the fresh start program. 

To qualify for the OIC program, you must meet certain criteria. You must also complete and submit an Offer in Compromise application and pay a non-refundable application fee. If you are approved for the OIC program, you will agree to pay a lump sum payment or agreed-upon monthly payments to the IRS. 

The amount of your payment will depend on your ability to pay, your financial circumstances, and other factors. Once you have completed your payments, the IRS will forgive the remaining balance of your tax debt. 

How to Apply for the Offer in Compromise (OIC) Program

 
If you want to apply for the Offer in Compromise (OIC) program, you must complete and submit an Offer in Compromise application and pay a non-refundable application fee. You can get more information about how to apply for the OIR by visiting the IRS website or by contacting a tax professional. 

What Happens if I am Approved for the Offer in Compromise (OIC)? 

If your application for the Offer in Compromise (OIC) is approved, you will agree to pay a lump sum payment or agreed-upon monthly payments to the IRS. The amount of your payment will depend on your ability to pay, your financial circumstances, and other factors. Once you have completed your payments, the IRS will forgive the remaining balance of your tax debt. : 

The IRS offers a tax debt forgiveness program called the Offer in Compromise (OIC) program. The OIC program is designed to help taxpayers who cannot pay their taxes and need a fresh start. To qualify for the OIC program, you must meet certain criteria and complete and submit an Offer in Compromise application and pay a non-refundable application fee. If approved for the OIR program, you will agree to make lump sum or monthly payments until your taxes are paid off at which point the remaining debt will be forgiven by the IRS.

IRS Collection Actions: What You Need to Know

Blog Introduction: The Internal Revenue Service (IRS) is responsible for collecting taxes owed to the federal government. If you fail to pay your taxes, the IRS may take action to collect the money you owe, including filing a federal tax lien or levy. But can the IRS go after your family? Keep reading to find out.

IRS Tax Liens

A tax lien is a legal claim the IRS can file against your property if you fail to pay your taxes. A lien gives the IRS a legal right to your property, which means the IRS can seize and sell your assets to satisfy the debt you owe. Tax liens are filed with your county recorder or clerk and are generally public records, which means they can negatively impact your credit score. 

IRS Levies 

An IRS levy allows the agency to seize and sell your property in order to satisfy an outstanding tax debt. The most common type of levy is wage garnishment, which allows the IRS to take a portion of your paycheck each pay period until the debt is paid in full. The IRS can also place levies on other types of income, such as Social Security benefits or pension payments. In some cases, the IRS may even seize and sell property, such as real estate or vehicles. 

Can the IRS Go After My Family? 

In short, no. The IRS cannot Dip into joint accounts, IRAs, or 401(k)s held by you and your spouse. And, generally speaking, the agency will not Garnish wages or seize assets from family members who are not personally liable for the tax debt. However, there are a few exceptions to this rule. For example, if a family member owns property that was used for tax avoidance purposes—such as hiding income or underreporting income—the asset may be subject to seizure. 

if you owe back taxes, the IRS may take actions to collect the money you owe—including filing a lien or levy against your property. However, generally speaking, the agency will not go after your family members in an attempt to collect a debt that they are not personally liable. If you have any questions about what actions the IRS can and cannot take in regard to the collection, we recommend speaking with a tax attorney or enrolled agent who can advise you based on your specific circumstances.