IRS Fresh Start ProgramIRS Fresh Start Program Los Angeles

Tax debts can be agitating and can often lead an individual to significant financial distress. To help ease the burden of paying substantial taxes, the Internal Revenue Service (IRS) has launched the Fresh Start Program to help the businesses and individual taxpayers by providing them several benefits and relaxation to pay off their debts.   The Fresh Start Program was started in 2011 to help struggling taxpayers and offer them more flexible ways to settle their tax problems. Over the years, there have been several advancements made to the rules to make paying taxes more convenient and easy.  

What is the IRS Fresh Start Program with the IRS

The IRS Fresh Start Program was started in 2011 as a benefit program for the struggling Taxpayers. The program allows the financially distressed taxpayers to pay off their tax debts with considerable ease over the maximum period of 6 years.   This program is designed to simplify the process of paying substantial taxes and save on other liabilities that come with taxes like interests, penalties, etc. The benefits that come with the IRS Fresh Start Program enable taxpayers to pay off their debts much quickly and efficiently.   The Fresh Start Program is one of the best support programs from the Internal Revenue Service. The program is designed to support the financially troubled business owners and individual taxpayers. Due to several clauses within the program, it can be a little difficult to understand all of it. Therefore, one should seek guidance from a tax professional and understand the whole program, before enrolling in.  

How does the IRS Fresh Start Initiative work?

The IRS Fresh Start Program was initiated in the year 2008 and was strengthened in 2012, to help the struggling taxpayers with unpaid tax debt. Over the years, IRS has made several advancements to their support initiatives and increased the threshold to qualify for the Fresh Start Program. Earlier where the debts would have to be paid within a time frame of five years, it can now be paid within 6 years.   The program allows the financially struggling business owners and individuals who owe up to $50,000, to follow a streamlined installment agreement procedure. The agreement enables the struggling taxpayers to pay their debts in fixed monthly amounts, without facing significant amounts of interests and penalties.  

How do you qualify for the IRS Fresh Start Program

The Fresh Start Program was designed to give the overburdened taxpayers a second chance to manage their finances well and pay off their debts satisfactorily with ease.   To qualify for this IRS program, one must clear certain criteria, post which he gets to enjoy the tax benefits offered through the IRS platform of the Federal government. Below are the criteria to meet to qualify for this program:
  • The self-employed person must provide proof of a 25% drop in his income
  • The financially burdened tax \payer must be unemployed for 30 days or more
  • An individual applying for this program must be earning below $100,000
  • If they are joint filers, they must have an earning of below $200,000
  • The financial burned owe the debts lower than $50,000
  • The filers can pay off the 100% debts over the maximum period of 6 years
 

Does the IRS forgive tax debt after 10 years?

Many overburdened taxpayers are unaware of the clause in Internal Revenue Services, where the Federal body has 10 years to wipe the taxes of an individual or business clean from their record book. This is called the 10-year statute of limitations. The statue was never meant to be popular among the public, which is why several taxpayers are unaware of this.   One has an option to wait off the IRS so that their tax debts can be forgiven. While this sounds amusing and advantageous, the Federal body can employ various legal tactics to make you pay your debts. After a while, their tactics can go more aggressive in debt collection; therefore, one must be prepared for such actions. The debt collection period can be put on halt, if someone files for Bankruptcy, offer in compromise, being out of the country, signing a waiver to extend the time for debt payment.  

Can you negotiate with the IRS

Being in debt with the IRS does not mean that it cannot be negotiated. There is an option where one can seek relief from his debts by going under the negotiating terms with the tax relief professional. While this can be a financially feasible method, one might have to undergo several complications to sit for negotiations.   If an individual/business is facing difficulties in paying off their taxes they owe to the government, they can negotiate a payment plan, where they can systematically pay their substantial amount during a period. They also have an option to request for a reduced amount, through an offer in compromise. tax debts