Can Tax Debt Be Forgiven With the New Administration?

Tax Debt Forgiveness

The covid19 pandemic has hit many individuals incredibly hard this year. It has caused jobs to be lost, businesses to shutter and looming debt for millions. With many facing foreclosure and loss of income, tax debt is sure to be added to the list of covid19 pandemic stressors, as we move into the holidays. But, following a turbulent 2020, many Americans are looking for relief, especially in the form of tax debt forgiveness.

Coming after the holidays, a new presidential administration will be inaugurated into the White House. Joe Biden’s economic policy is a hot topic as this transition looms. Cash strapped individuals are certainly curious as to what tax relief or tax debt forgiveness may be in the works.

New Administration & Tax Debt Forgiveness

The Biden/Harris administration has long been touting their plan to eliminate student loan debt, along with pushing for another Covid19 pandemic stimulus package to give some relief to those who are suffering. In addition, many tax professionals and hard-working citizens are wondering what the next administrations tax reform plans are.

Here’s What We Know

The Biden administration believes that the wealthiest Americans need to pay a fairer share of income taxes. He also plans on raising the corporate tax rate from 21% to 28%. In addition, Biden plans on heavily taxing large inheritances and looks to increase the child tax credit. It is important to note that these measures will have to make their way through votes to become new tax law.

It is unclear at this time whether additional tax debt relief or forgiveness measures will be pushed by the incoming administration. However, no matter what happens, Ideal Tax Solution is here to help you navigate the choppy waters of tax debt. Our professionals want to encourage you to not ignore those IRS notices that may be arriving.

Tax Relief For You

Let us help you obtain tax debt relief so that you can get back on track to financial stability and freedom. There are several things you can do to make things right with the IRS. The first thing our professionals suggest is contacting the IRS to set up a long term or short term payment plan. These payment plans are dependent on the level of debt you have. They benefit you by allowing you to pay things back over time.

We should mention that payment plans do not negate penalties and fees that may have accrued on your tax debt. However, we are finding that due to the Covid19 pandemic, the IRS is being more lenient than normal with these penalties.

Another option Ideal Tax Solution can help you with is applying to have your account put into “Currently Not Collectable” status. This pauses collection on your account.

We certainly have hope that this new administration will offer struggling Americans tax debt forgiveness or relief in the face of the pandemic. No matter what happens, Ideal Tax Solution will be here to assist you every step of the way.

We provide professional guidance to people whose lives have been affected by tax problems. To evaluate your specific tax issue and determine if you qualify for tax relief,  please contact us for a free consultation. We are COVID-19 prepared, we will work with you over the phone and via e-mail.

The content of this post does not replace the advice of a licensed tax professional. Consult a qualified tax professional for questions specific to your circumstances.

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