The short answer
There is no single relief program that wipes out tax debt. The real options are payment plans, an offer in compromise, currently not collectible status, penalty relief and spouse relief. Each option has its own rules. An offer in compromise is the only one that settles for less, and most offers are not accepted.
In fiscal year 2025, the IRS accepted 5,464 of 38,797 offers. Results depend on your situation. Not every case qualifies.
Words to know
- Currently not collectible (CNC)
- A status where the IRS pauses most collection because you can't pay basic living costs. You still owe the debt.
- Offer in compromise (OIC)
- A deal where the IRS agrees to take less than the full amount you owe. It costs $205 to apply, plus a first payment.