If you owe money to the Internal Revenue Service, you’re not alone — in 2018, IRS data showed that more than 14 million U.S. residents owed a combined $131 million in back taxes, penalties and interest.
Most likely, that number has only increased since the COVID-19 pandemic began in March 2020, causing millions to lose their jobs and tighten their pursestrings. But there are ways to resolve your tax debt.
When taxpayers fill out our Tax Relief Survey, they are able to see if they qualify for the IRS Fresh Start Program and begin their journey toward tax resolution in minutes.
Why a Payment Plan May Not Be Your Best Option
One of the easiest tax resolution methods is setting up an installment agreement or payment plan with the IRS. The agency prefers this because it allows them to charge you interest as you pay off the balance, increasing your debt even more.
During the early days of the pandemic, the IRS was forced to close, creating a backlog of 11 million unopened pieces of mail that the agency is only now beginning to catch up on. As employees sort through thousands or even millions of tax cases, they may pressure you more than ever to agree to an expensive payment plan just to get your case off their desk.
Could You Be Saving More Money?
But there are better options. One of these is the IRS Fresh Start Initiative, which could allow you to have part of your federal tax debt forgiven, reducing your balance by up to 90 or even 95%.
It’s completely free to find out if you qualify for the Fresh Start Initiative. Start by filling out this brief survey and you could be on your way to saving thousands or having your debt forgiven completely.