Tip 2: Be realistic about your situation.
The IRS rarely forgives tax debts and the application for such an offer, Form 656 is usually only given to people experiencing true financial hardship. If you or your family have had catastrophic healthcare expenses or you’ve lost your job and have poor prospects for generating income in the future, you may qualify. It doesn’t happen often but it does happen on occasion.
SuperMoney, the financial services comparison website for consumers, has some tips on how to get tax debt relief.
“Tax forgiveness is intended for people truly struggling with a tax burden,” said Miron Lulic, CEO of SuperMoney. “People have to be realistic with themselves.
“If you are able to manage all your debt, don’t have any sources of income, and don’t own any assets that could be seized by the IRS, you may qualify for tax relief. Don’t assume that it is impossible just because someone else told you this.”
We hope these helpful tips will show you there is more than one way through the maze of taxes in America.