One of President Trump’s campaign promises was that he would lower taxes. So it’s perfectly plausible to hear about changes to the IRS that would make it easier to pay taxes, such as a special “Trump Tax Forgiveness” or “Fresh Start” program. However, neither program currently exists at the IRS.

This isn’t to say that IRS tax forgiveness doesn’t exist. Tax forgiveness is sometimes possible, but only in limited situations, and it often only applies to a portion of the total tax debt. So the next time you see or hear an ad touting the benefits of a Trump tax relief program, be skeptical. And if you need help dealing with unpaid taxes, seek out the help of a legitimate tax resolution firm, such as Seattle Legal Services.

Key Takeaways

  • Fake marketing – There’s been a recent increase in ads and marketing efforts touting “Trump Tax Forgiveness” for taxpayers with unpaid tax balances. These marketing terms don’t refer to real IRS tax relief programs.
  • Real tax settlement options – The IRS has tax forgiveness options, but they were around well before President Trump took office.
  • How to settle taxes – Many of these programs have stringent eligibility requirements and/or only result in partial tax debt reductions if you prove that you cannot pay.

What Are “Trump Tax Forgiveness” and “Trump Fresh Start” Programs?

Anytime you hear these words being used on the radio, television, or social media, understand that they’re just marketing terms used by a small number of unscrupulous tax relief businesses. At best, they’re just used in a bait-and-switch scheme to grab your attention and refer to tax settlement and resolution options that were available well before President Trump took office.

At worst, tax businesses use these terms to scam you into thinking these are real programs. The goal of these con artists is to promise they can eliminate or dramatically reduce your tax debt, but charge you money for their services. Then, after you pay them, you never hear from them again, or they fail to deliver what they promised.

In addition to using terms such as “Tax Forgiveness” and “Fresh Start,” there are other phrases, words, or lingo you might come across that could signal misleading or deceptive tax claims:

    • Use of the word “guarantee.” Most tax relief options are never guaranteed and depend on various factors.
    • “Pennies on the dollar.” Getting the IRS to significantly reduce a tax debt is possible, but it’s rare.
    • “One-time” forgiveness.” Any legitimate tax relief program will likely have limits on how often they can be used, so marketing terms used to indicate that taxpayers must act quickly usually signal the use of misleading tax relief promises.
  • Anything that sounds too good to be true.
  • Reference to a secret tax law that provides financial relief to taxpayers. Congress might pass a new tax law that provides tax relief, but if so, you’ll also hear about it on major news outlets.
  • Mentioning of credit scores. The IRS doesn’t factor in a taxpayer’s credit history when determining tax relief eligibility.
  • “IRS approved.” The IRS doesn’t endorse any private business’s tax relief services.

What’s Wrong With These Tax Relief Ads?

The reason why these types of ads are potentially dangerous to consumers is that they’re misleading. This can result in taxpayers who are already struggling financially spending money on tax services that produce no results. Or if there are results, the results don’t justify the cost.

This could be because the company misled the taxpayer into thinking they’d receive a larger amount of tax relief. But it could also be because the company settled the tax debt in a way that the taxpayer could have easily done themselves.

For example, you might be eligible for penalty abatement. Depending on your tax situation, this could be as easy as calling the IRS and requesting it after explaining why you should receive it. Alternatively, you might have to complete special forms and attach documents to back up your claim. For instance, this may apply if you were asking for penalty relief due to reasonable cause, and you need to attach medical records showing that you were hospitalized.

In the first situation, you shouldn’t have to pay anyone to receive the penalty relief, or if you do, the fee you pay should be reasonable in relation to the tax relief obtained. In the second situation, it’s understandable that you might have to pay more given the amount of assistance you’re likely to require.

These companies prey on taxpayers who are in financial distress and desperate for anyone or anything that they believe will save them. These companies know exactly what to say and how to say it to lure their potential victims.

Many of these companies get away with their slippery marketing tactics, but not all of them do. The U.S. Federal Trade Commission (FTC) tries to crack down on these unethical and often illegal business practices. There’s a notable case from a while back where the FTC was able to get tax relief scammers to agree to pay back more than $15 million in ill-gotten gains. But to stop these tax schemes, the FTC needs taxpayers to report them, which they can do by filing a complaint with the FTC.

Changes to the IRS

Another potential source of confusion is that major changes are likely coming to the IRS. For instance, IRS Commissioner Danny Werfel announced he would resign before President Trump’s inauguration earlier this year. Significant staff cuts are also expected at the IRS.

Then there’s the fact that the roughly $80 billion allocated to the IRS through the Inflation Reduction Act of 2022 has been reduced by about $20 billion and could be further reduced under the Trump Administration. With all these changes happening at the IRS, it’s easier for unscrupulous businesses to deceive confused and distressed taxpayers.

With all this chatter, it’s also easy for taxpayers to get confused and think they don’t need to pay taxes while Trump is president. Despite these changes, the IRS is still currently operational, which means taxpayers are still obligated to pay their taxes. It also means that the IRS is continuing to offer its tax relief options to eligible taxpayers.

Real IRS Tax Relief Programs

As mentioned earlier, there are real and legitimate tax relief programs available from the IRS. Some of the more popular options include:

It’s important to note that you won’t see a “Fresh Start” program listed here because that “program” was only used by the IRS to refer to an OIC or its renewed efforts (starting in 2011) to help taxpayers avoid IRS tax liens and pay any back taxes.

Also, keep in mind that these options may take some time to achieve. The IRS wants to examine your tax situation and may ask for certain documentation as proof of your financial situation. Then, once they confirm your eligibility, there may be room to negotiate the details and terms. This is especially true if there’s a level of discretion involved. This application and negotiation process could easily take several months to accomplish, if not longer.

Trump Tax Relief FAQs

Is there really a Trump Tax Fresh Start or Forgiveness program?

No, there isn’t. While some IRS tax resolution options exist that can settle a tax debt for less than the full amount, these were in place before President Trump took office. At the time of writing, there are no new tax relief options.

What’s the difference between the IRS Fresh Start program and the Trump Fresh Start program?

There’s no difference in that neither is real. It’s true that in 2011, the IRS used the term “fresh start” to market its public awareness campaign to help taxpayers become aware of tax payment and relief options for unpaid tax bills. The IRS also used this term to refer to its OIC program (but no longer does). Therefore, there is currently no official “IRS Fresh Start” program where taxpayers can apply to have their federal tax bills forgiven.

How can I tell if a tax relief company is legitimate?

There’s no way to guarantee a tax relief company you’re talking to is real, but there are several potential red flags to look out for:

  • They claim to use tax lawyers or CPAs, but no names are given to verify the credentials.
  • The use of generic program names that sound official, but aren’t real IRS programs.
  • High-pressure sales tactics.
  • They ask you to sign an agreement quickly because you need to “act now” or they’re only giving you a “limited-time offer.”
  • You’re asked to pay a large, upfront fee.
  • They make promises without a case evaluation.
  • They never provide a clear tax plan for your particular situation.

Is it possible to settle my tax debt for pennies on the dollar?

Yes, but it’s rare. If you’re able to settle your tax debt for less than what you owe, it’s probably going to be a partial reduction in your overall tax debt, such as with penalty abatement. Situations where you can reduce your tax balance by a significant amount will usually take years to obtain (with a PPIA or OIC) and are only eligible for those in the most financially dire situations.

What should I look for when choosing a tax lawyer?

When deciding who to hire to represent you in a tax matter, you want to find a tax attorney with the following traits:

  • Extensive experience handling unpaid tax debts with the IRS.
  • A good reputation within the local community in which they practice.
  • Provides realistic estimates on your tax relief options.
  • Doesn’t use pushy or high-pressure sales tactics.
  • Works for an actual law firm.
  • Comes with good references, including online reviews and referrals from city, county, and/or state bar associations.
  • Has verified tax credentials that are recognized by the IRS.

In addition to the above, you want someone you get along with. This might require you to talk to two or more tax attorneys about your situation to get a better feel of which one you “click” with and feel more comfortable talking to.

Work With a Legitimate Tax Professional – Get Help Now

Many legitimate tax relief professionals can help you with your back taxes. In fact, most companies you come across are probably real and not trying to scam you. However, you still need to be careful about who you talk to about your tax situation and who you decide to hire for help. One way to do this is to look for tax resolution firms that are also law firms.

Having a tax attorney help you offers several advantages over an enrolled agent (EA) or Certified Public Accountant (CPA):

    • Attorney-client privilege. EAs and CPAs have confidentiality requirements, but these are nowhere near as robust as the attorney-client privilege.
    • More effective negotiations with the IRS. Due to their increased understanding of tax law, a tax lawyer may be able to obtain a better tax debt relief resolution for you.
    • A less sales-y approach. Lawyers have ethical and professional standards they must uphold when they advertise and market themselves that many other tax relief professionals aren’t bound by.
  • Greater transparency and improved communication.

If you’re struggling with taxes and ready to talk to a tax pro, schedule a free consultation with Seattle Legal Services, PLLC. Our primary goal is to help you with your taxes and we’re more than happy to discuss your options, even if they don’t require our services. To get started, call us at 425-428-5262 or use our online contact form.