Recent article stated borrowers in a difficult financial situation may be able to apply for an Offer in Compromise, which may result in the IRS allowing you to pay a smaller amount than you owe. The is also termed being insolvent. Website: https://www.irs.gov/forms-pubs/about-form-656
There’s also a link for a tool to determine if you qualify on this website
Posted by HoundDog1031
1 Comment
Yes, this form has been around for decades. Now that forgiveness is taxable again, it will probably be used by a lot of student loan borrowers. You can claim insolvency if your liabilities exceed your assets.