IRS Fresh Start ProgramIRS Fresh Start Program Sacramento, CA

It might have happened that you forgot to pay your taxes one year and that one year turned into several years. And now you owe a huge sum of money to the IRS that you can’t pay off. To help people negotiate their tax repayment amounts, the Internal Revenue Service has introduced the IRS Fresh Start Program.

 

The Fresh Start Program by the Internal Revenue System has taken the United States of America by storm. People know that it is a good thing for them as it is going to help them out with their tax payment. Sadly, they don’t understand how exactly this new initiative is going to work. So, let’s look at the answers for some common questions that people have about the Fresh Start Program by the Internal Revenue System –

Does the IRS forgive tax debts?

Honestly, the Internal Revenue System will rarely ever consider forgiving your tax debts. So, it can be said that it is a very uncommon phenomenon. You can try to get your taxes evaded, but that is going to come at a very hefty price – felony conviction, $250,000 fine, the charges of prosecution, and five years’imprisonment. If your case is particularly fortunate, you might be allowed to go for the Form 656 which lets you settle your tax debts for a much lesser amount than you owe the IRS.

 

However, to qualify for this, you need to have no stable source of income or possession of assets. If you have a job and assets, there is no way that your tax debts is going to be forgiven by the Internal Revenue System. Also, there are some guidelines established by the IRS that you have to fulfill to be able to qualify for any of the provisions offered in the IRS Fresh Start Program.

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

It is a common misconception that people end up in jail just because they couldn’t pay off their tax debts to the Internal Revenue System. Not having enough money is not a crime. Hence, there will be no imprisonment if there are no allegations or court proceedings.

 

However, if you failed to file your taxes or if you lied about your return, you might end up in jail. The simplest way to skip jail is by filing your taxes. It doesn’t matter if you could pay them on time or not.

How much wage can the IRS garnish?

Before garnishing your wages, the Internal Revenue System will send out a letter to your employer asking about a statement of your income and demand the due payment. In case you fail to pay this amount, you will soon receive another notice of Intent to Levy, stating that now the IRS has the right to levy or seize your property. One way of levying the property is the garnishment of your wages each week.

 

The IRS has more powers than any creditors when it comes to garnishing. It can choose to leave you with little money at the end of the week. The amount of garnishment usually depends on how much tax you owe to the IRS. The IRS decides the garnishment amount by keeping your pay period, filing status, and several departments in mind. If you earn $500 each week, they can take away $450, and if you make $2000 weekly, they can take away $800, depending on the amount you owe to them.

Who qualifies for tax forgiveness?

Your qualification for tax forgiveness directly depends on how the Internal Revenue System looks at you and your case. It’s all about your impression. You can not qualify if you –

  • Failed to inform about all of your earnings.
  • Failed to take all reductions in one account
  • Failed to state the correct income.
  • Failed to notify about side jobs and income.
  • Failed to pay off the debts while suddenly starting to earn more.

What happens if you marry someone who owes back taxes?

In case you happen to marry someone who owes back money to the Internal Revenue System in the form of taxes, you become responsible for it too. However, it depends on the status of your marriage at that time when your spouse incurred the taxes. In case you both were unmarried at that time, your spouse becomes solely responsible for the repayment of his or her taxes.

 

But, if you file jointly with your spouse, both of you become equally responsible for your tax repayment. The Internal Revenue System can take your share of the money from the joint account that you have with your spouse. However, there are a few conditions on which your liability depends in case of a joint file. The IRS will confirm of you both are still together, if you are aware of the filing issues that led to those back taxes and if you have benefited from the tax fraud. tax debts