IRS Fresh Start Program Glendale, CA

The Fresh Start Program offers you to avail of a series of amendments in the current IRS collection policies and procedures. It is designed such that it helps both small businesses and individual taxpayers who are trying to settle pending taxes. Hence, rather settling deep into the debts, this program allows them to pay off the liability in smaller amounts, with minimum penalties in a span of six years. One can decide on the right course of action considering their tax debt situation to apply for the IRS Fresh Start Program.

Guidelines for IRS Fresh Start in Glendale, CA

The IRS has been very considerate of their taxpayer’s conditions. To make the program furthermore beneficial for struggling businesses and individuals, it made certain amendments in 2012. Noteworthy guidelines are:
  • The installment agreement threshold is $50,000 if the defaulter is capable of clearing this amount within the stipulated time.
  • The payment must be made within six years, an increment from the previous limit of five years.
  • You can avoid tax liens for an amount between $25,000 to $50,000 by implementing a direct debit installment agreement.
  • You must acquire proof claiming that you don’t owe any money or assets to pay off your tax debt.
  • If you’re applying for OIC (Offer in Compromise), ensure providing detailed information about your financial status by filling the specified IRS form.
  However, remember that your eligibility also relies on the tax relief option that you tend to sign up for. Therefore, make sure you get to stand with the requirements concerning your preferred program.

How do I get the IRS to settle for less?

When you are financially not stern enough to pay your tax dues on time, you can use a few methods to get away from the IRS. You can even get them to settle for a lesser amount than what you owe them by seeking expert guidance.   While proposing a compromise, you’ll need to apply by completing a detailed information form leading with the information about your assets, income, and the other source of credits. Evaluating the data provided, the IRS will set in to compare your line of credits and monthly expenses to determine the amount of money that you can affordably pay each month. If your proposal gets accepted, you’ll have a span of two years to pay off your tax debts.   Hence, get into an installment agreement or a partial payment installment agreement to ease down the burden on you. Or, if you are utterly incapable of paying the tax, you can also file bankruptcy to save the pennies on your dollars. However, your last resort should be wage garnishment. You must act fast so that the penalty does not keep adding up.

What do I do if I can’t pay my taxes?

Firstly, do not panic. The IRS has provisions to help people with taxes and dues in all conditions. Even if you cannot pay back the full tax amount, you should file the return before the deadline.   Nonetheless, you can later get along with several options like short-term extension, offer in compromise, or presenting your account as currently not collectible. However, if none of these methods work for you, there are different programs by IRS, like the Fresh Start Program. You can check them out and take professional help for quick guidance.   Remember that, not heading with any measure will only lead to increasing your debt. Therefore, make sure to get into some action when you’re not able to pay your tax debts. Otherwise, you’ll probably find federal tax liens crashing your credits.

How do you qualify for the IRS Fresh Start Program?

IRS Fresh Start Program encompasses everyone who wishes to avail of the facilities and is facing economic hardship. You can qualify for easy debt settlement or even tax withdrawal by satisfying the following criteria:  
  • You should file all your tax returns till date. In case you find any missing or unfiled tax returns, immediately contact a professional to file your old tax returns. In most cases, up to 20 years old, tax returns can be filed.
  • Stay updated with your estimated tax payment and make sure that the current withholding data is accurate.
  • The self-employed individuals must give proof of a 25% drop in their income.
  • Your tax balance at year-end should be below $50,000 to qualify.
  • You can settle the tax debts within five years or less.
  • If you manage a business, and work with a team of employees, depositing all your federal taxes is necessary.
  • One must not be involved in any progressing bankruptcy proceeding.
  Aligning with all the qualifications is essential to sign up for the IRS Fresh Start Program. However, the set of requirements may slightly vary depending upon the type of program you enroll for.