What is the fresh start program?
If you are having a hard time keeping up with tax debt and you are concerned about getting up to date with your tax payments, you may be eligible for assistance through an IRS effort called Fresh Start. The IRS Fresh Start program provides tax debt choices that make it easier and less complicated for taxpayers to get caught up on their past taxes. Each of these options for dealing with your tax burdens comes with its own set of advantages and specific requirements for qualifications. If you’d like to be educated on the fresh start program, keep reading.
Some say the program does not exist.
This may appear weird at first glance, but many of the more than 10 million accounts reported each year are unaware of the IRS Fresh Start Program or write themselves off as ineligible. The lack of information on the fresh start program causes people with significant debt to accrue more tax debt.
After getting notified of an infraction and letting the emotions calm down, your first step should be to contact a tax relief professional. They will analyze your case, grasp the circumstances surrounding it, and then meet down with you to discuss your best alternatives, including whether or not you are eligible for the IRS Fresh Start Program. Working with a tax relief professional guarantees that your application is filed accurately and thoroughly, minimizing the danger of wasting your time. Keep in mind that dealing with the IRS is a notoriously complex procedure.
When do you qualify for the fresh start program?
There are several ways to become eligible for the fresh start program. While not every option is equally good, the IRS offers different ways to handle tax debt.
The most popular option is undoubtedly the extended payment arrangement, which allows you to settle your tax burden over six years. The IRS calculates a reasonable monthly payment based on your stated assets and income. When you take advantage of this chance, you won’t have to worry about accruing more fines and interest, nor will you have to worry about the IRS garnishing your wages or foreclosing your property.
If payment agreements are inevitable, it is time to consider
Is the fresh start initiative an intelligent option?
The simple answer is that the Fresh Start initiative equally helps the IRS and taxpayers. The IRS wins since they will obtain some form of payment rather than being ghosted by the taxpayer. The taxpayer benefits because they will regain good standing with the IRS, avoiding levies, foreclosures, wage garnishments, criminal sanctions, fines, and other penalties.
An offer in compromise is another option (OIC). An OIC lets you settle your tax obligation for a lower amount than what you owe. The IRS has made an OIC available to a broader group of taxpayers by giving the IRS more leeway in determining who can qualify. However, qualifying can be complicated, and more than often, you will have to consult a tax professional to help you file for an offer in compromise. Because the requirements are stringent, this technique is only available to taxpayers in severe financial conditions who lack the financial capacity to pay off their federal tax bills in full. Because of the stringent requirements for an OIC, not everyone who owes the IRS thousands of dollars will be eligible for the program. If you work with a professional tax relief business, your chances of obtaining an Offer in Compromise rise dramatically.
How to apply for the IRS fresh start program
Without appropriate documentation, the IRS will not accept a request for tax assistance through any Fresh Start Initiative programs. Therefore, include as much supporting evidence as possible when submitting a request. To elaborate, documentation is the most excellent proof against the IRS Fresh Start Program criteria. Documentation required should include doctor/medical statements, fire department records, insurance claims, student loan statements, and death certificates of family members, but other documentation would help to build your case. We also recommend attaching a letter with your Form 843 describing your situation and why you cannot pay your outstanding tax bill.
In addition, your projected tax contributions must be statutory, and your current withholdings must be exact. Finally, all filings for the previous six months must be present or accurate. Contacting a qualified tax relief business is the easiest way to avoid dismissing your request. Even if you are refused by the IRS, a tax relief firm can assist you in filing an appeal letter.
Do you have additional tax questions?
After reading this article, you should realize that the Fresh Start tax program is a smart choice if you owe the IRS and cannot fully pay your tax burden. However, you might still be afraid to contact the IRS directly, and you may still be uncertain about how to file your previous tax returns, typically required before you seek tax debt relief.
At Idealtax, we understand your concerns and financial hardship. Therefore, our tax professionals would love to assist you in obtaining a spot in the IRS fresh start program so you can rebuild your life freely.
