How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Wallstreet Esq. Your Own Question
Wallstreet Esq.
Wallstreet Esq., Tax Attorney
Category: Tax
Satisfied Customers: 586
Experience:  10 years experience
Type Your Tax Question Here...
Wallstreet Esq. is online now
A new question is answered every 9 seconds

I was given 100% military disability and owe back is taxes,

Customer Question

I was given 100% military disability and owe back is taxes, can I be forgiven
Submitted: 2 years ago.
Category: Tax
Expert:  PDtax replied 2 years ago.
Welcome to the site. I'm PDtax, and will be helping you today.
Back taxes are typically not forgiven, but they can effectively be uncollectible. That comes about in a number of ways.
One of negotiating with IRS to establish that the debts should be considered uncollectible. Depends on your income and negotiations.
A better way to think about it is your disability income might be exempt from collection. If the IRS can't attach the income, that is, if youthe disability pay is exempt, you get the same effect as debt forgiveness.
IRC 6334 exempts your military disability from IRS pursuit.
That means IRS can't attach the payment at the source. And, if they levy on your bank account after you get the $$, you should be able to get them to release their levy and return any funds seized improperly.
So, while the debt is not forgiven (it will become uncollectible ten years after the tax was assessed), it is essentially forgiven.
Thanks for asking at just answer. Positive feedback is appreciated. I'm PDtax.