For someone who has a lot of taxes piling up, the IRS has a solution for them — the IRS Fresh Start Program. It is made to let taxpayers pay off their tax debts over the time of six years. This is an excellent way to relieve oneself of their tax debts. The method is one of the best ways to guarantee financial stability, and obviously, it is not for everyone. This article will discuss who is eligible to enjoy the benefits of the IRS Fresh Start Program.  

What is the IRS Fresh Start Program?

The IRS Fresh Start Program is designed for individuals who have tax debts piling up and are searching for a solution. Now they can pay their taxes without making a dent in the pocket. They can affordably pay the outstanding amount over six years. They are liable to pay an amount each month to get relieved. The amount is estimated according to their current income and the value of their liquid assets. This program significantly reduces the process of paying a considerable amount of taxes in one go and makes it taxpayer-friendly. It helps the taxpayer to get rid of penalties, tax liens, seizure of assets, and interest. The Fresh Start Program was started in 2008 and has proven its merit time and again.  

Who qualifies for the IRS Fresh Start Program?

The IRS has established specific criteria for the eligibility of the IRS Fresh Start Program. Only by fulfilling these, one can avail the benefits of this program.

Unemployment

You should be unemployed for 30 consecutive days to be eligible for this program. If filing for a joint return, the spouse should also meet at least one qualification. Sometimes the individual is not able to meet the criteria, so the IRS allows a couple to participate as long as one of them qualifies for at least one point.

Self-employed

For self-employed persons, the criteria are that they should have witnessed at least 25 percent of the drop in their income. This is to ensure equity for both independent and employed taxpayers.

Income

To meet the criteria for availing the perks of the program, you should have an income of one hundred thousand dollars or less. Likewise, if you have a spouse, your combined net income should not exceed two hundred thousand dollars. Also, your tax debt should be less than fifty thousand dollars by the end of the financial year.

Procedure to follow

To be a part of this program, you need to fill out a form known as IRS Form 1127 A, which is readily available on the IRS website. You can not fill it online and have to mail it physically for processing. Use the correct postal address for sending the mail.

Filling correct details

To avoid any hassle and inconvenience, ensure that you file your taxes correctly and in an orderly manner. You must conform to the IRS requirements. If you fail to submit the correct information and do not make your payments on time, you could be disqualified from the program and end up being back with your tax debts and also some extra penalties and fines.

The IRS has introduced this program, and it is like a second life for many struggling taxpayers. It aims to provide them with a second chance to pay their taxes and not fight with them instead. It helps you comply with your tax debt and lets you avoid getting your assets seized, your income garnished and even prevents you from filing for bankruptcy. So, settle your account immediately by joining the IRS Fresh Start Program.