One-Time Tax Forgiveness: How To Qualify, Get Tax Relief, And Avoid Penalties

If you’re dealing with tax debt, then one-time tax forgiveness can sound too good to be true. However, this is an actual IRS program.

Did you know that the IRS issued 27 million penalties to taxpayers in 2021 (according to the Taxpayer Advocacy Panel’s Report)? Unfortunately, only 20% of these taxpayers benefited from penalty abatement.

So, you’re not the only taxpayer who needs tax relief. Let’s learn what one-time tax forgiveness means and how to request it.

Is There An IRS One Time Forgiveness? How Do I Request A Penalty Abatement?

Also known as penalty abatement, the IRS one-time tax forgiveness does exist. The purpose is to waive penalties for taxpayers who made a mistake in filing a tax return or not paying on time. 

Despite the name, a taxpayer can invoke this program more than once. The main requirement is to not have received any penalties in the previous 3 years if you’d like to apply again. 

If you’re frequently late filing your returns or skipping payments, it’s very unlikely that you’ll be approved for this program.

How Does Tax Forgiveness Work?

The IRS offers many forms of forgiveness through the Fresh Start Program, but when it comes to one-time tax forgiveness, it’s quite straightforward.

If you’ve always filed your taxes on time (either personally or as a small business owner), then the IRS may consider your request for penalty abatement. 

The qualifications are strict, so for the best possible result, be sure to work with a professional tax relief company. TaxRise knows everything there is about tax relief and how the IRS operates. Check out our free tax consultation to see which tax relief route suits you best.

How To Qualify For Tax Forgiveness (Who Is Eligible?)

To request one-time tax relief, here’s what you need to do:

  1. Fill Out Form 843 (Claim for Refund and Request for Abatement): This is an official IRS form that is a formal request for abatement. Be sure to set aside a lot of time to complete this form as it will go into specifics.
  2. Submit A Written Petition: The IRS offers the option of submitting a formal written request that explains why you were unable to pay on time and why the IRS should erase your penalties. 
  3. Call The IRS: An IRS representative is available for a phone call. However, understand that you will probably be on hold for hours. There’s also a good chance that they’ll just reiterate the above options.

Does this sound like too much work? If you owe IRS penalties, don’t fall into the trap that 80% of Americans who owed penalties last year did. 

Let TaxRise take requesting tax forgiveness on your behalf off your plate. As a professional tax relief company, we’re used to dealing with the IRS and understanding complicated tax jargon.

The Takeaway

Tax relief can get complicated, but it doesn’t need to ruin your life. We help advocate on your behalf to the IRS. We save you stress, time, and money. 

TaxRise has helped thousands of American taxpayers just like you resolve their tax issues and erase their tax liability. 

If you don’t know which tax resolution best suits your needs, check out TaxRise’s free tax consultation. From this quick call, you’ll be able to determine if you qualify for our services and which tax relief program will work best for your unique situation. 

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