Understanding the Basics of Fresh Start Program by the IRS: A Big Relief for Tax Debt

It's hard enough to be under IRS tax debt; top it all off, you have hefty interest and extra fees as well. You will eventually end up not making any payments to avoid paying extensive interest and fees. Instead of ending up in more trouble, isn't it better to make use of the IRS Fresh Start program?

Curious about what the IRS Fresh Start program is?

Read on!

IRS Fresh Start Program

Started way back in 2011, the IRS Fresh Start program focuses on providing relief for taxpayers who are in debt. This program is designed especially for first-time offenders to set things right. It lets taxpayers pay their debt over six years through monthly payments, which are decided based on your liquid assets and how much you are earning currently.

This program helps taxpayers pay off the heavy debts they have on their heads.

Here is how this program makes it easier for taxpayers:

● More frequent FIL withdrawals for taxpayers who are entering a direct debit installment agreement

● Easy FTL releases upon paying off debt

● Easily obtains installment agreements for small businesses

● It makes it easier for taxpayers to use an office-in-compromise program by streamlining and expanding its qualifications.

● Increases different kinds of expenses, the amounts (like student loans) that the IRS considers reasonable while deciding how much taxpayers can pay every month.

● Simplifies IRS method of calculating taxpayer future income

Who is qualified for the program?

People who can qualify for the program are those who are ready to pay their tax debt through installments paid over time. Other factors that determine the qualification are:

● Those having an IRS debt of fifty thousand dollars or less

● Those who can repay most of the amount

● Will be able to repay the debt over 5 years or less.

● I have not fallen behind on tax payments before.

● Those who are ready to pay as per the direct payment structure

● Agrees to follow the installment agreement

● Agrees to pay the decided amount for an OIC within a year.

Diverse repayment options are provided under the IRS Fresh Start program.

The program offers three repayment options that are legal and satisfactory. It helps in avoiding any future penalties as well.

1-Extended installment agreement

This is the first option available for those who owe fifty thousand dollars or less; the time duration decided is six years or less, without bearing any additional fees or penalties.

2- Offer in Compromise

In this case, the taxpayer agrees to pay less than the amount owed to them. The amount is lower than the actual debt amount.

3-Tax lien withdrawal

This option is for taxpayers who are willing to pay the entire debt through direct debit repayment.

Summary

The IRS Fresh Start Program will help you ward off tax debt in an affordable manner without the risk of falling into debt during the process. However, it is always advisable to consult a professional who can assist you through this journey and make it easy by tax consultation services.

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Created on Sep 23rd 2023 02:21. Viewed 85 times.

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