IRS Fresh Start Program
What is the IRS Fresh Start Program?
The Internal Revenue Service (IRS) Fresh Start initiative was instituted to allow taxpayers to pay off substantial tax liability, affordably through specific repayment options, based on their income and the value of their liquid assets.
By utilizing this program, it allows taxpayers to avoid the detriments of having tax liability, including:
What are the Repayment Options for the IRS Fresh Start Program?
If you are currently struggling with tax liability, the Internal Revenue Service repayment options may be the right choice for you. These repayment options will allow you to pay off or settle your tax liability legally and sufficiently. Also, this will help prevent any further detriments that would cause any more financial hardships.
Option #1: Offer In Compromise
Through the IRS Fresh Start Offer In Compromise program, a taxpayer who qualifies may only be required to pay a percentage of the outstanding tax liability owed. The goal of this program is to allow taxpayers to reach a settlement with the IRS when, given their income and asset situation (doubt as to collectability), it would be impossible for them to repay the tax liability in full. In addition, in less common situations, taxpayers may also request a settlement of the outstanding tax liability via the Offer in Compromise program when there is doubt as to the liability or under effective tax administration assertions. It is important to note that submitting an application does not ensure that the IRS will accept your offer. The IRS takes into consideration a number of factors, including your monthly income, allowable monthly living expenses, available equity in assets, etc. If you want to make an Offer In Compromise to the IRS, it is critical that you make a reasonable offer, one that precisely reflects your financial situation. Therefore, it would be wise to contact a tax professional to assist in the submission of your offer.
Option #2: Economic Hardship Installment Agreement Plan
Option #3: Currently Non Collectible (CNC) Status.
Option #4: Streamlined Installment Agreement
What are the Qualifications of the IRS Fresh Start Program?
This program generally is available for both business tax liability and individual tax liability, with the exception of the streamlined Installment Agreements, which are only available to individuals.
How Can I Best Take Advantage of the Tax Forgiveness Programs?
Tackling tax issues on your own may inhibit your ability to take full advantage of the program. The best IRS Fresh Start results can be achieved by consulting a tax professional. They understand all the ins and outs of the program and can provide meaningful insight to assess your situation. Also, they can aggressively negotiate on your behalf and possibly settle your liability for far less than what you originally owed.
How Do I Apply for the IRS Fresh Start Program?
Step1: Gather Documentation
Step 2: Schedule to Meet with a Tax Attorney
Step 3: Fill all IRS Forms
Step 4: Follow Through
Keep an open line of communication with your tax professional and follow through on your responsibilities to obtain your financial freedom!Contact our team of tax professionals for a free consultation to learn more about the Fresh Start Program and see how much you can save!