IRS Fresh Start ProgramIRS Fresh Start Program San Diego

The Internal Revenue System came up with a new start program, and it is a dream come true for a lot of taxpayers and small businesses. It prevailed as an easy and affordable means to settle tax debts without a load of heavy penalties. However, with every new initiative comes a ton of questions, and they need to be answered well to educate the public about the benefits they will be getting and the demerits that they might have to face. So, let’s have a look at a few FAQs about the Internal Revenue System Fresh Start Program –

IRS Garnished my wages, what should I do?

The Internal Revenue System has all the rights to garnish your wages, i.e., collecting a viable amount of your income or paycheck until your tax debt is paid off. It usually takes 30-70 percent of each paycheck. So, if this happens to you, you must not freak out. Instead, contact the IRS and first check whether you actually owe an amount. Next, figure out if you are eligible for a tax relief program, including the Offer in Compromise, Installment Agreement, or Currently Not Collectible status.

 

However, when you are going to do this, you must do it as soon as you can because you might not get your money back even if your garnishment is released. The best trick is to avoid getting your wages garnished. You can do this by being proactive with your taxes. The Internal Revenue System might not garnish your wages if you’re communicative with them. The system can send you a final verdict, 45 days before they set to garnish wages or take any other action. So, don’t ignore their notices and act immediately if you want your full payments.

What is the Fresh Start Program with the IRS?

Introduced in 2011, the Fresh Start Program is an initiative by the Internal Revenue System to help people pay off their taxes over a period of six years without having to face tax liens. Tax relief programs account for a significant part of the fresh start initiative. It offers a variety of payment options to make the entire process of paying tax debts easy. The taxpayers need to make monthly payments to the IRS, which is calculated considering their current income and assets.

Who qualifies for the Fresh Start initiative?

If you look at it, there is no described list of qualifications you must hold to be a part of the Fresh Start Initiative. This is mainly because this program is not just one tool for relieving people from the burden of taxes. It is a toolbox that has specific methods of helping you out. So, the eligibility depends on these particular methods or tax relief options that you pick for yourself.

 

Although there are some essential criteria that you must meet to join the fresh start program –

  • You must file all the tax returns that you are expected to. It doesn’t matter if you can’t pay for anything.
  • Your tax debt must be $50,000 or less.
  • It is the first time that you’re failing to make tax payments with the IRS.
  • Provide proof that you don’t have anything to pay off your tax debts.
  • Not be a part of a current insolvency proceeding.
  • Submit all the needed federal tax deposits in case your business has employees.
  • Submit all the tax payments for the ongoing year if you are a self-employed worker or if you own a small business.

 

While at it, if you qualify for the Fresh Start Program, certain bonuses might also fall in your plot.

Does the Fresh Start program work?

A lot of people believe that the Fresh Start Program is not as promising as they thought it would be. It is being said that it reduces the credit score of the people, which in turn increases their problems with tax payments.

 

However, the fact that the IRS Fresh Start Program working with underlying plans has relieved many taxpayers from the tax debts cannot be discarded. More so, the system over the years has strived to streamline the process for more people to settle their tax issues.

Will I go to jail if I owe back to the IRS?

There are zero possibilities of the IRS putting you behind bars just because you failed to pay your taxes. This is mainly because it takes a toll on the IRS to upload proofs concerning tax crimes, validating prison as the ultimate penalty.

 

However, if you try to play frauds with the system, you might be hauled off to prison. Know that going to jail is not a rare situation in cases like:

 

  • Tax evasion- presenting increased deductions or falsely representing your income and assets.
  • Failure to file- avoiding or failing to file a return.
  • Tax fraud- filing a false return or submitting fake documents while filing tax return.