How to Qualify for the IRS Tax Debt Relief Program

If you owe taxes and aren’t able to pay them, you may be able to qualify for the IRS tax debt relief program. This can help you if your financial situation has changed since you last filed your return, such as if your income decreased or you had a sudden expense. The IRS will only grant you the tax debt relief program if it is the best option for you in the given circumstances. The eligibility criteria include things like your income and assets. If these are not enough to alleviate your financial stress, then rest assured that this isn’t because the program isn’t available to you, but rather that it simply isn’t right for you at this time in your life. However, keep reading so that you understand more about what it takes to qualify and when it makes sense to pursue this option.

What is the IRS Tax Debt Relief Program?

Tax debt relief is a process by which you can settle your tax debt with the IRS through a settlement agreement. If you are approved for the program, the IRS Tax Debt Relief Program will reduce or eliminate the balance of your outstanding tax debt under special circumstances. Once you agree to a settlement, the IRS Tax Debt Relief Program will contact your creditors and offer to take on your debt as if you had paid it. This can happen without you ever having to make a payment or file a return. However, the IRS will only approve certain taxpayers for this program. The IRS will review your income and assets to see if you qualify for the tax debt relief program. You can’t apply for the tax relief program on your own. You have to have tax debt and a willing creditor to initiate the process. Once you have been approved for the program by the IRS Tax Debt Relief Program, you will have to sign a settlement agreement. You will then pay your creditor and end your tax debt relief.

Who is Eligible for the IRS Tax Debt Relief Program?

You qualify for the tax debt relief program if you owe back taxes, have been offered alternative payment arrangements by the Tax Debt Relief Program, and are unable to pay your debt. The IRS will only approve applicants who are living paycheck to paycheck and are considering bankruptcy. If you are under financial stress, like you might be if you owe back taxes, but don’t qualify for the tax relief program because you could pay off your debt, then you can still explore other payment options. The tax debt relief program might be right for you if you are in dire financial straits and have been offered an installment agreement with the IRS but don’t have the means to pay off your debt. The IRS will accept your application for the tax debt relief program if you are currently filing a joint return but are unable to make your tax payments.

How to Qualify for the IRS Tax Debt Relief Program

In order to qualify for the IRS tax debt relief program, you need to be approved by the IRS. The IRS will review your income and assets to determine if you are able to make a payment without affecting your ability to meet your basic living expenses. If so, you will be approved. You will first have to file a tax return that is past due. Usually, the IRS will approve full tax debt relief if the return is more than three years past due. If you are not sure how long your past due return is, then you should consult a tax professional. After you have filed the return, you will have to pay it in full. Once the IRS has received payment, it will then initiate the tax debt relief process with your creditors. The IRS will make a payment directly to the creditor to help you pay off your debt. The creditor will then accept the payment and reduce your monthly payment.

Is a Tax Debt Relief Program Right for You?

If you are currently struggling financially and have been offered an installment agreement with the IRS, then a tax debt relief program might be the best option for you. If you qualify, then you can settle your debt at no cost. However, if your income is low and you are unable to pay off the entire amount, then you might want to consider filing for Chapter 13 bankruptcy. The IRS will only approve taxpayers who are in dire financial straits and don’t have the means to pay off their debt. If this is the case, then a Chapter 13 bankruptcy will give you the ability to pay off your taxes while keeping your other financial obligations in check. In fact, you can even use the tax debt relief program to gather some information about your financial situation before you file for bankruptcy.

Conclusion

The IRS Tax Debt Relief Program will only approve taxpayers who are in dire financial straits and don’t have the means to pay off their debt. If this is the case, then a Chapter 13 bankruptcy will give you the ability to pay off your taxes while keeping your other financial obligations in check. If the tax debt relief program isn’t right for you, then you can explore other payment options. The IRS will only approve taxpayers who are in dire financial straits and don’t have the means to pay off their debt. If this is the case, then a Chapter 13 bankruptcy will give you the ability to pay off your taxes while keeping your other financial obligations in check. In fact, you can even use the tax debt relief program to gather some information about your financial situation before you file for bankruptcy.