Fresh Start IRS Tax Relief

When you owe huge taxes, a letter or mail from the Internal Revenue Service can fill you with dread and anxiety. Most of the time, taxpayers get stuck in these financial waters, and the IRS levies a tax debt on them. While you need professional help right away, there are services by the IRS that you can consider. The IRS Fresh Start Program is for those who cannot pay the tax immediately. This can liberate you financially and help get tax relief without incurring heavy interests and penalties in the bigger picture.

IRS Fresh Start Program guidelines

There are no strict guidelines to follow while applying for IRS Fresh Start. However, you must suffice the following criteria to avail of the services.

• Prove your incapability to pay the debt.
• File all your past and current tax returns even when you cannot pay them. You cannot apply for any tax relief option until and unless you’ve tax returns that are yet to be filed.
• Keep an estimate of the tax payment.
• If you have a business with employees, clear your federal tax deposit.
• Do not have any ongoing bankruptcy proceeding.
• Your final tax debt should be lesser than $50,000.

How does the IRS Fresh Start Program affect installment agreements?

The IRS Fresh Start Program gives you access to simplified installment agreements. You can also avoid tax penalties when you set up an installment agreement with the IRS. They provide five different types of installment agreements:

• Routine – You get an extended repayment period for a significant amount.
• Partial Pay – Quite similar to an offer on compromise (OIC), you can make monthly payments till the last collection day.
• Streamlined – You can settle tax debt of up to $50,000 within six years.
• Guaranteed – Within three years, you can settle a tax debt of up to $10,000
• In Business – Payback the business debts of less than $25,000 within two years or less.

You can register online, requesting an installment agreement plan.  However, know that negotiating the plan with the IRS all by yourself can be a daunting task. Concerning this, a tax professional can help you negotiate the payment amount and interval to yearn a favorable outcome in return.

Is the Fresh Start Program Real?

Indeed, the Fresh Start program is real and helps you save your immediate expense on taxes. When the recession hit in 2008, Fresh Start took off in the market. Ever since 2012, its new amendments like extending the time of repayment to six years and increasing the threshold from $25,000 to $50,000 has helped many people.

More so, the program is designed considering the hardships of the taxpayers experiencing situations like unemployment or bankruptcy. People who are unemployed for more than 30, can possibly qualify for having their IRS penalties waived off. And can also request six months extension to file and settle their debts without the fear of bearing heavy penalties.

The taxpayers can avail of this relief in the form of eliminated penalties on late payment and forgiving past debts. The goal of the IRS is to make the citizens pay their taxes without any excess fees and liens.

How do I apply for Fresh Start Program?

To apply for a Fresh Start Program, you need to follow the strict rules provided by the IRS. Once all your tax returns have been filed, you can visit the official website IRS.gov and considering all the criteria, sign up for the IRS Fresh Start Program with the help of the Online Payment Agreement tool—helping you to select the right repayment option. Or you can also enroll in the program by filling and submitting the Form 9465 at the IRS’s official website.

The process can seem a little complex, and so, we suggest that you take proper professional help. Working with a tax expert can help you expedite the process so that you can start early with the IRS Fresh Start Program and get to settle your tax debts. The monthly installation plan under the Fresh Start Program can alter based on your debt amount and tax type.

Can the IRS reopen my debt after a Fresh Start Initiative settlement?

Yes, the IRS Fresh Start Initiative settlement can be re-evaluated. This is to ensure that you are keeping up with your payments and continue to file and pay your taxes for the assigned period after completing the terms of your settlement program.

Failing to do so can lead the IRS to nullify all the terms of your tax relief program and hold you liable for the full amount of taxes that you owe. Also, know that the IRS regularly updates the tax codes along with their Fresh Start Program. And taxpayers filing under a specific tax code can be affected by the changes in the tax codes. Therefore, it is advised to get your tax filing reviewed by a tax professional to ensure that you’re aligned with the current regulations.

What if I can’t pay right now?

If you don’t have the fund necessary to pay of your debt, you can connect with the IRS directly to help you delay any type of debt collection.