IRS Fresh Start Program
Taxpayers are often trapped in debts that they are unable to pay to the IRS. And this turns out to be a stressful situation for many among such debtors. Even if one is prepared to pay off their debt, getting through the whole protocol can entail a whole lot of challenging tasks.
Meanwhile, waiting through the years to resolve the debts also doesn’t stand as an option. Hence, here comes the role of the IRS Fresh Start Program that allows you to pay off your debt without any heavy penalties or high-interest rates adding on to it. More so, here is what all you should be mindful of regarding the IRS Fresh Start Program.
What is the IRS Fresh Start Program?
When put in layman terms, the IRS Fresh Start Program is a handy means to give a chance to small business owners and individual taxpayers to settle an underlying debt without much hassle. It’s an initiative to keep these taxpayers from breaking their backs when it comes to coming out of a substantial debt situation.
Avoid Tax Liens
A prominent aspect behind the hiking popularity of the IRS is its innate focus on preventing tax liens. This is to assist the already troubled taxpayer so that he can avert some of the loan amounts without having to bear any additional lien. The IRS aims to collect the debt and taxes owed in a way that the individual, as well as the government, can have a win-win situation.
Negotiate Offers in Compromise
Another crucial aspect of the IRS Fresh Start Program turns out to be Offers in Compromise, which allows the debt holder to pay a relatively lesser amount than he owes. However, many things like credibility, accuracy & liability, and effective tax administration come into the picture when the IRS is proceeding with this Fresh Start Program.
Can Anyone Qualify for the IRS Fresh Start Program
Several factors need to be considered to determine whether you’re eligible for the IRS Fresh Start Program. Like, if you’re self-employed taxpayer, then you’ll have to verify a fall in your net income rounding off to 25 percent or more.
Alongside, the married couples filing together will need to have an income of less than $200,000 per annul. On the other hand, as a single individual, you’ll need to have earnings of less than $100,000 per year. However, remember that the Fresh Start Program can only turn out to be fruitful for the ones owing $50,000 or less to the IRS. Numbers exceeding this limit won’t be able to favor you with any benefit.
While at it, your best bet is to get along with a reliable tax attorney who can walk you through different aspects of dealing with the IRS. As there are many negotiations to be taken care of, you should be proactive about hiring an experienced tax attorney who can not only clear your doubts but also secure your best interest. Make sure you’re all prepared with an in-depth understanding of the IRS Fresh Start Program before taking the plunge.