They say they'll apply for IRS hardship programs to lower or even eliminate your federal tax debts. They even promise to stop back-tax collection. But the truth is that most taxpayers are unlikely to qualify for the programs these scammers advertise. In many cases, these companies don't settle your tax debt.

Disreputable companies lure customers with false promises while charging high fees. Still, legitimate tax settlement firms do exist. These companies are honest about whether you can benefit from their services and charge reasonable fees that are disclosed upfront.

Optima Tax Relief at a glance

The IRS will typically only settle for what it deems you can feasibly pay. To determine this, it will take into account your assets (home, car, etc.), your income, your monthly expenses (rent, utilities, child care, etc.), your savings, and more. The average settlement on an OIC is around $5,240.

IRS debt relief is for those with $50,000 or less debt. For married couples, tax debt forgiveness is available if their solo income is below $100,000 or $200,000. You can also apply for the IRS debt forgiveness program if you're self-employed and have experienced at least a 25% loss of income.

NOTICE: to qualify for this program, all tax returns must have been filed, you must have no assets, on limited income, and in financial hardship.

Who Qualifies For The Fresh Start Program? The Fresh Start program is open to any taxpayer who owes taxes and is struggling to pay them. There are no income requirements. The first step in applying for the IRS Fresh Start program is to contact your tax attorneys or accountants and see if you qualify.

Optima can help you with services like audit representation, addressing IRS wage garnishments and levies, removing tax liens, reducing penalties, setting up installment agreements, and determining whether you qualify for an offer in compromise.

First, the IRS can accept a compromise if there is doubt as to liability. A compromise meets this criterion only when there's a genuine dispute as to the existence or amount of the correct tax debt under the law. Second, the IRS can accept a compromise if there is doubt that the amount owed is fully collectible.

6 years - If you don't report income that you should have reported, and it's more than 25% of the gross income shown on the return, or it's attributable to foreign financial assets and is more than $5,000, the time to assess tax is 6 years from the date you filed the return.

Forgiveness is at the discretion of the IRS based on specific criteria, such as income level and ability to pay. Here are some IRS tax debt forgiveness programs that may be available to you: Currently Non-Collectible: Forgiveness for individuals who can't pay. Offer in Compromise: Reduced overall tax burden.

10 years Yes, after 10 years, the IRS forgives tax debt. After this time period, the tax debt is considered "uncollectible". However, it is important to note that there are certain circumstances, such as bankruptcy or certain collection activities, which may extend the statute of limitations.