IRS Tax Discharge
Worried about old IRS tax debt you can’t afford to pay?
IRS Tax Discharge Service
In certain rare cases, the IRS may allow a discharge of taxes, which permanently wipes out part or all of your tax liability. This is different from a payment plan or settlement — a discharge means the debt is legally erased.
What Is an IRS Tax Discharge?
A tax discharge is a legal process where certain back taxes are eliminated, usually through bankruptcy proceedings. Unlike an Offer in Compromise, which reduces what you owe, a discharge can remove tax debt altogether if strict requirements are met.
When Can Taxes Be Discharged?
Not all tax debt qualifies. The IRS and bankruptcy courts look at specific rules, including:
-
Age of the debt - Usually, the tax debt must be at least 3 years old.
-
Tax return filing - Returns must have been filed on time (or at least filed for 2+ years).
-
Assessment date -The IRS must have assessed the tax at least 240 days ago.
-
Fraud or evasion - Taxes linked to fraud or intentional evasion cannot be discharged.
Benefits of a Tax Discharge
-
Full release from qualifying tax debt.
-
Freedom from IRS collections, liens, and levies on discharged amounts.
-
A true fresh financial startwhen combined with other resolution strategies.
How We Help
Navigating IRS discharge rules is complex. Our tax resolution professionals review your case to determine if you qualify and guide you through the process. If a discharge isn’t possible, we’ll explore other options such as:
-
Offer in Compromise
-
Installment Agreements
-
Currently Not Collectible status
-
Penalty Abatement
