IRS Fresh Start Program Bay Area

The IRS Fresh Start Program has come as a blessing to those who are unable to pay their tax debt in one go. With the assistance of this program, the debt can be paid over a more extended period in the form of installments. Some essential questions regarding the IRS Fresh Start Program in the Bay Area have been discussed in this article.

How much do you have to owe to the IRS to go to jail?

Every defaulter asks himself this question every day. The habit of evading taxes catches up, and you end up not paying taxes for years on end. It is possible to land up in jail for not paying taxes. But you can not be imprisoned for not having enough money to pay. Hiding your returns, however, is a punishable offense.   The IRS is lenient with defaulters who do not have enough money but are strict with non-filers. Evading taxes can put you in prison or for filing a fraudulent return. Not filing a return is also an offense. So it is not much about the amount, but the act of owning up is what matters.

How much can IRS garnish wages?

The IRS can garnish your wages without a court order, unlike other creditors who have to obtain a court order for the same. The condition specified by IRS to garnish wages is if you fail to respond to the notices the IRS has been sending you to clear your tax overdue. A time period of eleven to twenty-five weeks is standard before the IRS starts reducing your income after the first notice.   You can only keep a certain percentage of your paycheck. The garnishing amount depends upon your filing status, number of dependents, and pay period. For example, an individual who has no dependents and is earning two thousand dollars per month will get an amount of 358 dollars garnished every pay period.

How can I get tax forgiveness?

Tax forgiveness exists; however, it is a very far-fetched concept. There are existing programs that can help ease your burden. The Offer in Compromise (OIC) is a suitable agreement that can be set up with the IRS. The OIC can help reduce your tax debt significantly. However, not many can qualify for the OIC. You can also place a request to be considered currently not collectible. This will reduce your tax debt to zero. You also have to disclose your financial condition.   There is another way to get away without paying anything to the IRS. If you are honestly and seriously not in a position to pay pack, then you can apply for being considered Currently Not Collectible (CNC). There are, however, conditions like your present condition be such that paying back loans can cause you great financial peril. The CNC status is shortlived and not permanent. The IRS will assess you at a later time to consider your financial status if you are able to pay back at that time. There is still a catch. Your load can outlive if your condition is forever unchanged. In that case, you can get away without paying anything to the IRS.

What is parent tax forgiveness?

This tax forgiveness program is for taxpayers with low income to diminish their tax debt. This is achieved through tax forgiveness credits. To qualify, one has to finish the tax forgiveness schedule and then file a PA-40 return. The tax forgiveness amount depends on income and the number of dependents.   If there is a four-member family which includes two dependents with a salary of up to $34,250, they are eligible for tax forgiveness. In the case of a family of a single parent with two children, then having earnings up to $27,750 makes them eligible for the program. Qualifying for parent tax forgiveness is not everyone’s cup of tea and only twenty percent of the applicant households are able to qualify.

Can I settle with IRS myself?

Yes, you can settle with the IRS yourself. The first step is to file even if you are not in a position to clear the debt. The tax bill does not expire in a short time, and you can figure out the details with the IRS. There are compromises like the offer in compromise (OIC), which you can have with the IRS.   A lot of factors are at play to decide whether you are eligible for the OIC. These include your earnings, your assets, your expenditure, whether you are in the position to pay. It is necessary to file your tax returns. If the IRS agrees for a settlement, then there are two ways to pay back your loan. You can either make the payment with your application or you can go with periodic payment where you pay the loan in monthly installments.