In Australia there are two official ways for the Tax Office to “forgive” a debt: release and compromise. Release only applies to Income Tax, and you have to prove significant hardship and a few other things. read more
Based on what i know, IRS does not forgive owed taxes. If you owed tax debt and doesn’t pay them, they will garnished your wage, assets, and sometime they even restrict you from leaving the country. However, the good news is that you can reduce tax debt that you owed. read more
The lender is usually required to report the amount of the canceled debt to you and the IRS on a Form 1099-C, Cancellation of Debt. There are several exceptions to the taxability of cancelled debt, such as insolvency or bankruptcy. read more
While the IRS probably won't forgive your entire tax bill, it can help you manage payments or negotiate a settlement. Tax Relief Companies If you've got tax problems, it's best to go straight to the source: the IRS. read more