White House to Use Tariff Revenue to Forgive Millions in IRS Tax Debt

The IRS has already forgiven at least $66 million in tax debt in 2025. Check your eligibility for tax forgiveness here.

WASHINGTON—The federal government is promising to use tariff revenue to forgive tax debts for millions of working families and retirees who need relief from IRS collection.

The White House announced on Thursday its plan to expand the IRS Fresh Start Program by using revenue generated from new tariffs on imported goods to offset the tax debts of working-class Americans.

The Fresh Start Program has provided real relief to taxpayers since it was launched in 2011, helping reduce or even completely erase their tax debts.

If actual tariff revenue meets White House projections, this could become the largest tax forgiveness program under any presidential administration.

When taxpayers fill out our Tax Relief Survey, they are able to see if they qualify for the IRS Fresh Start Program and begin their journey toward tax resolution in minutes.

The White House has also discussed using revenue saved from DOGE's cost-cutting to end taxes on Social Security income—and even eliminate income taxes entirely. According to policy analysts, its plan to forgive a record amount of tax debt is the most realistic proposal, as the Tax Cuts and Jobs Act of 2017 (TCJA) is set to expire.

Earlier this week, Republicans in Congress narrowly passed a government spending bill that would extend the tax cuts from the TCJA. The bill now moves to the Senate, where Republicans also have a slim majority, essentially giving them free reign over tax forgiveness and IRS funding.

These political trade winds could create a perfect scenario for thousands of Americans who desperately need relief from tax debt.

If you owe federal back taxes and can’t afford to pay them in full, applying for tax relief before the end of this month is critical. The IRS charges an additional 5.5% on unpaid taxes each month, along with interest charges that accrue daily.

Take this 60-second Quiz to See if You Qualify for the IRS Fresh Start Program.

Tax debt affects thousands of Americans; however, few seek assistance to resolve their debts with the IRS. It’s not that the resources are unavailable, but that the IRS bureaucracy often gets too complicated for the average American to handle.

In truth, fighting the IRS is a full-time job, so Americans are turning to reputable tax relief firms to ensure that they receive the most relief possible.

Many Americans do not realize they qualify for tax relief because they never took the time to check their eligibility for tax relief programs.

Remember, it is 100% free to see if you qualify for the IRS Fresh Start Program, and a few minutes could help you save thousands.

Take the Next Step

Every day, your tax debt grows larger due to penalties and fees. It is vital to act now and partner with a tax relief expert to receive the best resolution possible.

You’re our first priority. Every time.

At FreshStartInfo, we believe everyone deserves to be able to make tax decisions with confidence. We have dedicated, hard-working tax professionals and volunteers who ensure that the information on this site is current and as accurate as possible. While we always recommend you consult a tax professional for your specific situation, we’re proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward — and free.