Today TaxMama hears from Luz in California, with this query. “Is there any period of time, or once every 4 or 10 years that the IRS forgives or gives a percentage reduction on the amount owed on back taxes to the community?”
That’s an interesting question.
You’re talking about a tax amnesty program. Does IRS do that?
I seem to remember something waaaay back in the darkest depths of my memory, that IRS did something like that a couple of decades ago. But I can’t find anything online to prove that.
In 2003 IRS did run an amnesty program for folks who had offshore accounts and hid a variety of income sources by having the payments go to their offshore credit card accounts.
California had a tax amnesty program for individuals and businesses that ended in 2005.
States will run them periodically.
But I don’t see any indication that IRS is considering running an amnesty program any time soon.
So, what are you really asking about? Instead of waiting for an amnesty that probably won’t come, why not face up to the issue and address it head-on?
And remember, you can find answers to all kinds of questions about IRS debt, amnesty and other tax issues, free. Where? Where else? At TaxMama.com[Note: If you were subscribed to the e-mailed TaxQuips, you’d be getting other exciting news and tips by e-mail, that never appear on the site. Please click on the subscribe link and join us.]
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- AllBusiness.com :: Information about IRS 2003 offshore credit card amnesty
- About.com – William Perez, EA :: Information about California’s 2005 tax amnesty