This seems like a simple question, but the answer really depends on your financial situation.
In order for the IRS to write off your tax debt we have to prove that you have a financial hardship. For some people, this may mean we can actually negotiate a pennies on the dollar tax debt settlement on your behalf. For others, with a little better financial situation, we may be able to negotiate to get some of your debt dissolved.
Let’s look at some examples.
John owes $70,000 in back taxes to the IRS. He doesn’t own a home and has no tangible assets. He has $32,000 in student debt. His annual income is $24,000 a year. Someone in a situation like John’s would be a good candidate to get most or all of his tax debt forgiven.
Susan owes the IRS $55,000. She doesn’t own a home, but fully owns a 2 year old SUV. She has $20,000 in student loan debt. Her annual income is $40,000 a year. Someone in Susan’s situation would most likely not be able to get all of their tax debt forgiven because the IRS would likely see a small potential to pay in her financial situation. However, because the potential is small, she may be likely to get at least some of her debt forgiven. Also, an affordable payment plan could be set up to enable her to work towards paying off the rest of the debt.
Patrick owes $25,000 to in back taxes. He owns a home and has two paid-off vehicles. He doesn’t have any debt besides a modest mortgage on his house. His annual income is $85,000 a year. Someone in Patrick’s situation would not likely be able to get any tax debt forgiven. The IRS would likely see great potential for him to pay off the debt. However, we could still help Patrick set up an affordable payment plan, get penalties removed, and stop his wages from being garnished.
The stress and complexity involved in dealing with the IRS is immense. Getting your debt dissolved is just one of many solutions that can help you get your tax debt paid off. Our tax relief specialists will look at your financial situation and develop a carefully thought-out plan tailored specifically to you.