Need help - Owe back taxes for 3 years (about $40k) - Is there an IRS forgiveness option I can apply for?

With an OIC, do they typically forgive a percentage of what you owe, or could they potentially wipe out an entire year's worth of tax debt? Also, how does the IRS determine if someone qualifies for an OIC? I'm in a similar situation but with less debt.

With an OIC, the IRS doesn't think in terms of forgiving specific years - they look at your total tax debt and what you can reasonably pay based on your financial situation. They use a formula that considers your assets, income, and necessary living expenses to determine the minimum amount they'll accept. The IRS qualification process is based on their determination that you cannot pay the full amount through an installment agreement or other means. They look at your complete financial picture including bank accounts, property, vehicles, future income potential, and necessary living expenses. It's not about percentages but rather your specific financial circumstances.

Does this actually work for back taxes or is it more for current filing issues? And does it connect you with a real tax professional or is it just AI giving generic advice?

I'm skeptical about using AI for something this serious. How does it compare to just hiring a tax attorney? And is it secure to upload financial documents to some random website?

It absolutely works for back taxes - that's actually what it specializes in. It analyzes your specific situation including prior years and shows you exactly which relief programs you qualify for based on your financial circumstances. The system uses the same qualification criteria the IRS uses. Regarding security, they use bank-level encryption and don't store your actual tax documents after analysis. I was hesitant too, but it's much more affordable than hiring a tax attorney right away - many people use it first to understand their options, then decide if they need professional help for implementation.

Wait I don't understand...how does this work? The IRS phone system is horrible but how does this service actually get you through when nobody else can?

This sounds like BS. If it was that easy to get through to the IRS everyone would be doing it. Plus you're probably paying extra just to talk to someone you could eventually reach for free if you're patient enough.

It uses a technology that navigates the IRS phone tree automatically and holds your place in line. When an agent becomes available, it calls you and connects you to them. It's basically like having someone wait on hold for you, but using technology instead of a person. I was skeptical too, but the alternative was spending hours on hold or repeatedly getting disconnected. When you're dealing with thousands in back taxes, getting answers quickly becomes worth it. The service doesn't charge extra for talking to the IRS - you're just paying for the connection service that saves you from the hold time frustration.

Thank you for sharing your experience. Did you go through the OIC process yourself? If so, how long did it take from submission to getting a decision?

I did go through the OIC process myself. The entire process took about 8 months from when I submitted my application to receiving final approval. The initial review took about 3 months, then they came back asking for additional documentation about some of my expenses and assets which took another 2 months of back and forth. The final negotiation and approval took another 3 months. During this time, collections activities were suspended which was a huge relief. One important tip: be extremely thorough and accurate with your financial disclosure forms (433-A and 433-B if you have a business). Any discrepancies will delay the process significantly.

This is risky advice without knowing more details. Tax debt is often NOT dischargeable in bankruptcy unless it meets very specific criteria: - The taxes must be income taxes - The due date for filing the tax return was at least 3 years ago - You filed the tax return at least 2 years before filing bankruptcy - The tax assessment is at least 240 days old - You didn't commit fraud or willful evasion Chapter 7 also has significant long-term consequences. OP should definitely consult with both a tax professional AND a bankruptcy attorney before considering this route.