How does the irs just cancel debt?

[red324]

Saw a post online stating the irs cancelled millions in debt or something. How does this happen?

[AviatorTom]

For decades, the IRS works out partial payment for individuals who are way behind in paying taxes. It's better to get something than nthing. Doing that, of course, forgives the debt that is not covered by teh repayment.

For example, a person owes $100 thousand dollars in back taxes, but there's no way they can every pay that. So, the IRS works with them and gets $40 thousand and forgives $60 thousand. When they do that for thousands of taxpayers, the total amount of debt forgiven is in the millions.

[WindAtMyBack]

I assume it's like any other financial institution. There is a point when it's not worth pursuing. There is also a statute of limitations, although I'm not sure if that's the right word.

The thing is that the statue of limitations is 7 years if you owe them money, but it's only 3 years if they owe you money. Or at least that's how it used to be.

[qwerty2469]

You tell the tax payer "if you pay is 3k of your 11k debt in 30 days we will push delete on your account" how is this hard to understand? USD is fake. They just put the numbers on your tab and delete them if they want.

[exitseven]

The IRS can forgive debt. They are the final authority.

[In_Trance]

It doesn't happen.
They can post whatever they want to make you hopeful that someday it will... But it won't.

[CuriousMufuxka]

They're the fuckin IRS! Watch out for the audit..

[captain_voidwalker]

It means passing the debt onto taxpayers

[Mike_Hum]

It’s a scam.