A few weeks into Trump's 2nd presidency, I started receiving automated phone calls about a so called new tax forgiveness program under the Trump Adminstration. This isn't the first time misleading claims about tax forgiveness programs have circulated via robocalls as we reported one a few years ago about the "Biden Tax Forgiveness Plan" or the "Zero Tax" plan. The recent call I received followed the same patten. Below is the transcript of the automated call I answered.
The Transcript of the Call Claiming a New Forgiveness Program Under Trump
"T his is the Tax Relief Department. We've been trying to reach you regarding your pending Fresh Start application for an IRS forgiveness program. To speak with a tax specialist now, press 1 to be connected to an expert. We just need to verify a few details to finalize your eligibility."
"Based on your tax file and current economic situation, this program could help you significantly reduce or even eliminate your tax liability in some cases. This is a new government program approved by the current administration to assist families like yours who are dealing with back taxes and IRS issues."
"If you are no longer interested in this option or wish to be removed from our contact list, press 9. Please note that a live representative or tax specialist cannot process opt out D& C receipts. You must press 9 to be removed. This program expires at the end of February and is available for a limited time."
"Press 1 now to connect with a Tax Consultant."
Is There a New Tax Forgiveness Program?
No, there is no new tax forgiveness program and there is no new IRS Fresh Start initiative. Remember, The IRS Fresh Start initiative was introduced in 2011 to make it easier for taxpayers to resolve their tax liabilities. While some of its changes remain in effect, there is no single program called "Fresh Start" today. In fact, it is just a marketing term used by some tax firms to attact clients.. You can read more about the IRS Fresh Start initiatve if you want, but it is not a single program but a series of changes the IRS made to existing tax policies to make it easier for taxpayers to get into filing and payment compliance. Some of those changes included expanding the installment agreement (payment plans), changes to Offer in Compromise eligibility, easing federal tax lien policies, and penalty relief for unemployed taxpayers.
If you receive a call of this nature, realize it is most likely a lead provider or some type of marketing firm trying to have you connect with one of their tax relief providers. These calls are deceptive and misleading. The call is not from the IRS. The IRS never initiaties contact via phone calls for tax forgivness programs. If you have taken a call like this, you can report it to the FTC using their FTC Complaint assistant or the Treasury Inspector Geneneral for Tax Administration (TIGTA).
Does the IRS Provide Options Where I Can Pay Less Than I Owe?
Yes, there are ways to reduce penalties and the tax balanced owed to the IRS. However, not everyone qualifies for these tax resolution option. In fact, the Installment Agreement (payment plan) is the most commonly used tax resolution option compared to other programs like the Offer in Compromise or Partial Payment Installment Agreement among others.
Tax Resolution is Real and Forgiveness Is Possible
Some believe that tax resolution or tax relief is a scam. As a licensed tax professional and former tax resolution firm owner, I can confirm legititate tax relief options exist. However, most just qualify for an installment agreement. However, the IRS does offer programs that can reduce your balance like the Offer in Compromise program that require financial disclosure (as opposed to installment agreement below $50,000). Here is a quick rundown of common resolution options:
- Installment Agreement – Payment plan or payment arrangement where you can pay your taxes off over time
- Offer in Compromise – Allows you to settle your tax liabilities for less
- Currently Not Collectible (CNC) Status – Claiming hardship for temporary relief if you cannot afford to pay
- Penalty Abatement – Eliminates penalties for reasonable cause unless it is a first time abatement
- Partial Payment Installment Agreement – A type of payment plan where you pay part of the taxes owed over time
What Should You Do If You Owe Back Taxes?
If you have an IRS and/or state tax problem, you can find a local tax relief professional by leveraging the find a tax pro button at the top of this page.
Here is how it works:
1. Speciify whether your problem is with the IRS, State or both,
2. Enter your zip code to find a tax relief professional near you
3. Specficy what your tax problem is
Search results will populate showing licensed CPAs, EAs, and Tax Attorneys that have experience in providing tax relief. We strongly recommend working with a licensed tax professional rather than a large tax resolution firm. Many major tax resolution firms do not handle state taxes and they often use high powered sales professionals as the first line of contact. These sales reps often make unrealistic promises, often failing to deliever on them.
Final Thoughts: Don't Fall for Tax Forgiveness Scams
There is not tax relief department and the IRS is not cold-calling taxpayers offering forgiveness options. While many tax relief options do actually exist for struggling taxpayers, they often require financial disclosure and proper qualifications. If you are struggling with a tax problem, contact a qualified tax relief professional instead.