If you’re looking to get federal tax debt forgiveness, there are a few things that you need to think about and focus on first. This will help you determine whether you qualify and what it means for you if you do.
Federal tax debt forgiveness, or ‘offer in compromise,’ means that you could settle your debt to the federal government at a lower amount than your actual debt. This can help you save money for some of the other things you might need instead.
Now, to qualify for this type of forgiveness, you need to qualify. That means you need to meet certain requirements. And one is that paying your full tax liability creates a financial hardship for you (or you have no way of doing it at all). So consider looking into applying for this program in either of these cases.
You must submit information related to your income, expenses, asset equity, and overall ability to pay the debt you owe. But keep in mind that you’re not getting your entire debt forgiven. You’ll still need to come up with a significant sum that’s comparable to what the full amount that you owe would be.
Federal Tax Forgiveness Agreement
This type of agreement is based on getting as much money as you can expect from you within a reasonable amount of time. That means the further you are in debt, the more likely the government will take a much smaller amount of money for the debt. But of course, other factors are considered.
Suppose you have a lot of income and only a few expenses. In that case, the government may expect you to pay more because they assume you have more disposable income. But the government may decide the opposite if you have many expenses that have little income. Of course, your current assets and their worth will also play a part in this process.
Remember that just because you have an expense doesn’t mean that the government will consider it the same way. For example, having rent to pay is not the same as having a payment on a new car or a new TV. And the government can look at all of those expenses and request the ones that it finds necessary. Those are the only ones that will count regarding federal tax debt forgiveness.
If you think you qualify for federal tax debt forgiveness, contact CuraDebt to learn more. You can cut your tax bill by a lot. And that gets you out of debt a whole lot faster.