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TaxDebtResolution
Free · IRS · HMRC · ATO · CRA

Tax Relief Eligibility Checker

Answer five quick questions about your tax debt, budget and circumstances. We will show which official relief routes fit, payment plans, settlements, hardship release or penalty relief, for the US, UK, Australia or Canada.

In short: Can I get my tax debt forgiven?

Sometimes, but it is rare. The US Offer in Compromise and Australia's serious-hardship release can reduce or cancel tax. The UK and Canada rarely write off tax itself; their relief usually means an affordable payment plan or cancelling penalties and interest. Most people end up on a payment plan.

Last reviewed against 9 official sources.

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Which tax authority do you owe?

In India? Tax debts there work differently. Try the India tools.

Nothing you enter leaves your browser. No sign-up needed to see your result.

How the checker decides

It sorts you into one of three groups, then applies each country's own rules:

  1. Pay in full: your usable assets already cover the debt. Every authority expects you to use savings first.
  2. Payment plan: you have money left each month. We work out how long your surplus takes to clear the balance and whether the authority's online limits apply.
  3. Settlement or hardship relief: nothing is left after essential costs and your assets fall short of the debt. This is where the Offer in Compromise, Currently Not Collectible status, ATO release and CRA relief come in.

The rules by country

CountryMain routesKey numbers
US (IRS)Payment plan, Offer in Compromise, Currently Not Collectible, penalty reliefOnline plan up to $50,000; offer test = assets + 12 or 24 months of surplus; $205 offer fee unless low income
UK (HMRC)Time to Pay arrangementAbout 50% of monthly surplus; no fixed time limit
Australia (ATO)Payment plan, serious hardship releaseOnline up to $200,000 and 2 years; release for individuals only, not GST
Canada (CRA)Payment arrangement, taxpayer relief (RC4288)Relief cancels penalties and interest, not tax

Worked example

You owe the IRS $25,000, bring home $5,200 a month, spend $4,600 on essentials and have $3,000 in savings. Your surplus is $600. After using savings, $22,000 remains, which takes about 37 months to clear, so a payment plan is the main route. Your assets plus 12 months of surplus come to $10,200, less than the debt, so an Offer in Compromise is possible; the IRS would test it against its own expense standards.

Limits of this checker

  • Authorities use their own allowable-expense standards, which may be lower than what you actually spend.
  • Settlements and hardship relief are discretionary, a “likely” here is not an approval.
  • Business debts, payroll taxes and GST/VAT have extra rules not covered here.

Official sources

Figures last reviewed .

Frequently asked questions

Can I get my tax debt forgiven?

Sometimes, but it is rare. The US Offer in Compromise and Australia's serious-hardship release can reduce or cancel tax. The UK and Canada rarely write off tax itself; their relief usually means an affordable payment plan or cancelling penalties and interest. Most people end up on a payment plan.

What does the IRS look at for an Offer in Compromise?

Your reasonable collection potential: the equity in your assets plus your future remaining monthly income multiplied by 12 (if you pay the offer in five months or less) or 24 (if you pay over 6 to 24 months). If that is less than what you owe, an offer may be accepted. You must have filed all required returns and not be in an open bankruptcy.

How much will HMRC ask me to pay each month?

HMRC says it will usually ask for about half of what you have left each month after rent, food, utilities and fixed outgoings. There is no fixed time limit on a Time to Pay arrangement, and HMRC expects you to use savings first.

Can I set up an ATO payment plan online?

If you owe $200,000 or less you can usually set one up through ATO online services or the self-help phone line. You need to phone the ATO if you owe more, if you need longer than two years, or if you have defaulted on two or more plans in the last 12 months.

What is ATO release for serious hardship?

An individual can be released from some tax debts, including income tax, PAYG instalments, FBT, the Medicare levy and related penalties and interest, if paying would leave them unable to afford food, clothing, medical supplies, accommodation or reasonable education. GST and company debts cannot be released. Your home, a car and household goods are not treated as assets you must sell.

Can the CRA cancel my penalties and interest?

Yes, under the taxpayer relief provisions, using Form RC4288. Listed reasons include financial hardship, natural or human-made disasters, death or serious illness, civil disturbance and CRA errors or delays. Relief applies to penalties and interest, not the tax itself.

Why don't you ask for my name or phone number?

Because you shouldn't have to hand over personal details to learn your options. The checker runs entirely in your browser and nothing is sent to us.

Disclaimer: This tool gives a general estimate based on what you enter and the published rules. It is not tax, legal or financial advice, and the tax authority makes the final decision. Speak to a qualified professional before acting. See our disclaimer.