Is Trump Forgiving Tax Bills – Get the Truth Now!

The Trump Tax Forgiveness program – you’ve probably heard about it from your friends, on social media, or even through tax relief advertising campaigns. Unfortunately, it’s not real. 

Although President Trump is expected to make significant changes to the federal tax system, there are currently no new tax forgiveness programs available. 

If you are looking for help with unpaid taxes, be very selective about the company you choose to represent you. In particular, avoid companies that advertise false programs like the Trump forgiveness option. Quality tax professionals don’t need to misrepresent reality in their advertising – instead, they provide clients with transparent services and guidance. 

At The W Tax Group, we have extensive experience helping business and individual clients deal with back taxes, unfiled returns, and other IRS tax problems. To get help, set up a consultation today. 

‘Trump Tax Forgiveness’: A Misleading Marketing Scheme

There is not a Trump tax forgiveness act or program – however, phrases like this are commonly used by tax relief companies to attract customers and increase business. These companies advertise all kinds of tax forgiveness programs in an effort to lure in customers. 

But here’s the truth – IRS tax forgiveness isn’t about saying a secret word or applying for a limited-time program. The agency offers tax forgiveness on a regular basis to taxpayers who cannot afford to pay their tax bills.

Table of Contents

1. The Truth About ‘Trump Tax Forgiveness’ (A Misleading Marketing Scheme)
2. Real IRS Tax Forgiveness Options (What Actually Exists)
3. Trump’s Tax Proposals and Their Status (What’s Actually Happening?)
4. Trump’s Cease-and-Desist Order for the IRS (What It Really Did)
5. Is Trump Abolishing the IRS? (Fact vs. Speculation)
6. What If the IRS Was Shut Down? (Possible Alternatives)
7. Other Misleading Tax Relief Marketing Claims (What to Watch Out For)
8. IRS Collections Under Trump (Is the IRS Still Enforcing Taxes?)
9. How to Get Help With IRS and State Tax Problems (Avoiding Scams & Finding Legitimate Help)

Real Tax Forgiveness Options

Although tax forgiveness is never as easy as it sounds in the ads, it is possible. Here are the main IRS programs that provide relief to struggling taxpayers. 

• Currently not collectible – The IRS stops all collection actions on taxpayers who don’t have the income or assets to pay their debts. If the tax debt expires (10 years after assessment), the taxpayer never has to pay, but if their finances improve before the debt expires, they must make payments. 
• Partial payment installment agreement – Taxpayers who have enough disposable income to make payments pay monthly – but the payments are relatively small and not enough to pay off the debt before the expiration debt. Once the tax liability expires, the taxpayer doesn’t have to pay the remaining debt. 
• Offer in compromise -The taxpayer proves that they can only pay a portion of the taxes based on the equity in their assets and their disposable income. Then, the IRS settles the debt. Sometimes, taxpayers can qualify for even lower settlements in the interest of effective tax administration. 
• Offer in compromise based on doubt as to liability – If you can convince the IRS that you don’t owe the full tax liability, they will reduce the tax and let you settle. For this type of settlement, you don’t have to prove you can’t afford the tax, but proving that you don’t owe it can be tricky. 
• Penalty abatement – The IRS may remove penalties if it’s the first time you’ve incurred penalties in four years or if you had reasonable cause for incurring the penalties. Penalty abatement can save you a significant amount of money as late payment and filing penalties can get up to 50% of the balance. 

Taxpayers who don’t qualify for these types of programs are usually able to set up payments on their back taxes. The IRS has a variety of installment agreements that let you make monthly payments while incurring a competitive interest rate compared to most unsecured consumer loans. The team at The W Tax Group can help you apply for any of these real IRS programs, and if they’re not what you need, we’ll help you find the right solution.

Understanding President Trump’s Actual Tax Proposals

At the time of writing, none of Trump’s tax proposals have turned into law. However, the 2017 Tax Cuts and Job Act (TCJA) from his first presidency is still active. According to the Tax Foundation, here are some of his proposals:

• Extending TCJA individual provisions set to expire at the end of 2025 including the standard deduction, Section 199A pass-through deduction, and child tax credit.
• Repealing the $10,000 limitation on state and local taxes for taxpayers who itemize.
• Making the estate tax exemption from the TCJA permanent.
• Restoring TCJA business tax provisions including the 100% bonus depreciation and EBITDA interest limitation.
• Lower the effective corporate tax rate for domestic production to 15 percent through a domestic production activities deduction (DPAD).
• Not charging tips on income tax. 
• Removing income taxes on Social Security. 
• Eliminating the green energy subsidies from the Inflation Reduction Act (IRA).
• Raising Section 301 tariffs on China to 60%.
• Imposing 20% tariffs on US imports.

Keep in mind that while bureaucracy usually moves slowly, news cycles move quickly, and the above proposals are subject to change at any moment. Also, as legislation happens, some proposals may be turned into reality or modified during the legislative process. 

What Is Trump’s Cease and Desist to the IRS?

The IRS cease-and-desist is how the House Ways and Means Committee describes the IRS hiring freeze outlined in an executive order signed on the first day of Trump’s presidency. 

The hiring freeze executive order states that all federal positions vacant that day would not be filled and no new positions would be created. For all federal agencies besides the IRS, the hiring freeze would be lifted within 90 days once the Office of Management and Budget (OMB) and DOGE make an efficiency plan. 

However, according to Trump’s order, the IRS would be subject to the hiring freeze until the Secretary of the Treasury along with the OMB and DOGE decided that it was in the best interest of the people to lift the freeze. However, this order only affects new hires – it does not require the IRS to stop any collection actions or audits against taxpayers. 

The agency is continuing to send out notices, assess penalties, initiate audits, and operate as usual. 

Is Donald Trump Abolishing the IRS?

In President Trump’s inauguration speech, he stated that “instead of taxing our citizens to enrich other countries, we will tariff and tax foreign countries to enrich our citizens” and said he was going to create an External Revenue Service. 

Although Trump did not specifically say he was going to abolish the IRS in this speech, it is a popular idea that he has touted in many speeches. Analysts, however, speculate that this may be impossible or at least very unlikely. 

What Would Happen If the IRS Went Away?

There are many different speculations about what would happen if the IRS disappeared, but in Earl “Buddy” Carter’s (R-GA) bill, the Fair Tax Act, the IRS could be replaced by a federal sales tax. Introduced in January of 2025, the 132-page bill proposes to appeal income, payroll, and estate and gift taxes and institute a federal sales tax of 23% on taxable properties and services. 

Is this bill going to become law? Will Trump be able to abolish the IRS? While no one can predict the future, you can speculate, and even more importantly, you can look at what’s happened in the past. This bill is not new – versions of it have been introduced since 1999 and perhaps even further back. 

Under multiple presidents from both parties, IRS abolishment bills have never become law. Even with the current political climate, it is unlikely that a majority of representatives would be able to support a 23% sales tax – that said, the bill does carve out some talk of exemptions for people under a certain income, potentially making it more palatable to voters.

Other Misleading Tax Relief Marketing Campaigns 

Ads that talk about things like Trump tax forgiveness are not new – tax relief companies often use current affairs or dramatic phrasing to convince taxpayers to pick up the phone or fill out a contact form. 

Here are some of the other types of misleading phrases that have been used over the years with links to resources with more information:

• ‘Pennies on the Dollar’ Promises – One of the earliest tax relief ads used this phrase in the late 80s and firms have been using it ever since. They’re referring to the IRS offer in compromise (settlement) program, but they’re making it sound easier than it is. Check out this IRS Warning on Offer in Compromise (OIC) Mills
• Fresh Start Program – The ads make it sound like this is a special program you can apply for to get relief, but really, it’s just a set of changes the IRS made to collection practices around 2012. This program made it easier for taxpayers who were behind to get settlements and payments. For more info, look at IRS Fresh Start Program: Requirements and Options or Debunking Fresh Start Myths.
• IRS Forgiveness – Much like Trump Forgiveness, this is just another marketing phrase. It’s often called one-time forgiveness, and it may refer to first-time penalty abatement, settlements, or other relief options. Again, there is no set IRS program called IRS One-Time Forgiveness. 

If you’re hearing these types of claims in a company’s advertising campaigns, you may want to steer clear. Companies that use a lot of hype in their marketing also tend to employ large aggressive sales teams that are very trained to convince taxpayers to sign up for overpriced programs that don’t really solve their problems. These companies have tax pros on staff, but in most cases, you’ll never talk to the pro who’s working your case. 

So what should you do if you need help with a tax problem? Look for a tax attorney who has a record of keeping clients happy and helping them get back into good standing with the IRS. Rather than choosing a large firm with a massive marketing budget and an even larger sales team, look for a small firm of tax pros where you know your point person and know who’s working your case. 

Is the IRS Collecting Taxes Under Trump?

Yes, the IRS is currently collecting taxes. The agency is sending out notices, filing tax liens, seizing assets, and garnishing wages as usual. Tax returns are still due and subject to penalties if not paid or filed. 

Get Help With IRS and State Tax Problems

Income taxes are still a reality, and if you have unpaid taxes, you risk facing severe collection action and even if the IRS is not actively pursuing you, penalties and interest are increasing the balance every day. To get help dealing with back taxes, contact us at The W Tax Group today. 

Our team of tax attorneys and tax professionals can help you avoid collection actions. We can also help if you’re facing an audit, an incorrect assessment, an appeal, criminal tax fraud charges, or need Tax Court representation.