Write off balance due

Key Points to Remember:

  • The IRS may write off tax debt due to financial hardship or when the 10-year statute of limitations on collection (known as the Collection Statute Expiration Date, or CSED) has passed.

  • A write-off does not necessarily erase your liability permanently. In some cases, the IRS may later revisit your case if your financial situation improves or if an error was made in the original determination.

  • A tax debt write-off typically does not improve your credit score. If the IRS filed a federal tax lien, that record may still affect your credit even after the debt is written off.

  • If the IRS writes off your balance, they will issue a Notice of Write-Off. It's important to review this notice carefully and retain it for your records, as it confirms the cancellation of the debt.

  • In some cases, the forgiven amount may be considered taxable income, and you could receive a Form 1099-C. Be sure to consult a tax professional to understand any tax implications.

If you're unsure whether your debt qualifies for write-off or if you're approaching the end of the IRS collection period, our team can help. Contact us today to review your situation and see if you're eligible for tax debt forgiveness.

If you believe you may qualify for a tax debt write-off or you're nearing the end of the IRS’s collection period, now is the time to act. Our team can help you evaluate your eligibility and ensure you're taking the right steps to protect your financial future. Don’t wait until the IRS takes enforcement action—join our Tax Monitoring Program to stay informed about any changes to your account, including potential write-offs, liens, or levies. Contact us today for a free consultation and let us help you take control of your tax situation with confidence.

A Fresh Start: Write Off What You Owe the IRS

A write-off of balance due refers to the process by which the IRS cancels or forgives a portion or in some cases, the entirety of a tax debt when it is deemed uncollectible. This often occurs when a taxpayer is facing significant financial hardship and is unable to pay the debt, or when the IRS’s legally allowed collection period expires.