How do I Apply For the IRS Fresh Start Program

Avoiding your taxes for long periods is a prosecutor offense. It adds you to the defaulter list of the Internal Revenue Service that goes after such defaulters to collect the accumulated amount. The IRS has access to all your financial information. It assesses all your professional and business assets along with your social media, travel, debit, and credit transaction records.

But what if you are not in the right financial state to pay your taxes? You could get your taxes evaded, but evading taxes also comes at a hefty price. You may have to face a felony conviction, a $250,000 fine, five years’ imprisonment, and the cost of prosecution. So, what should you do? This is when the IRS Fresh Start Program comes into the picture.

Instituted in 2011, the IRS Fresh Start Program is an initiative by the Internal Revenue Service to encourage individual taxpayers and small businesses to pay their tax debts. This program involves provisions to make it easier for taxpayers to pay large sums of taxes in smaller installments over six years. It also helps people to avoid several determinants of owning a tax debts to the agency.

Guidelines for Tax debt fresh start forgiveness Texas

There are a few conditions that make you eligible for any of the IRS Fresh Start Program. If you live in Texas, you must follow these guidelines to be able to apply for the IRS Fresh Face program and avail its benefits:

  • There must be at least a 25% drop in your earnings if you are self-employed.
  • Your debt should be $50,000 or less if you are a starter.
  • In the case of a joint file, like for a married couple, the total annual income of both of you should not be more than $200,000.
  • For a single file, the annual income should not exceed $100,000.

Should I speak to a tax lawyer about tax debt?

Indeed yes. A person who has no knowledge or background of law can find it extremely difficult to resolve IRS issues. There are a lot of things that they have to go through like the revenue rulings, tax court findings, and congressional reports. In such a situation, it is always better to look for some expert guidance. If you find yourself under insurmountable tax debts, you must contact a lawyer who can help you with some professional advice.

A lawyer has a vast knowledge of tax laws and IRS proceedings and, thus, can tell you if you qualify for any of the provisions provided by the IRS and help you to negotiate your tax debts. With the expert suggestions from a lawyer,  you can even get your tax debt distributed in easy installments. If you let a skilled specialist talk to the IRS, he can aid you in finding a suitable resolution by writing a letter of compromise to the IRS. Once the IRS accepts your offer in compromise, you can feel relieved from the heavy burden of your tax payments.

Also, before you consult and hire a lawyer, you can try contacting several online consulting services. There are several online directories that can help you with a list of lawyers and law firms for an online or face-to-face consultation. These firms can provide Licensed Enrolled Agents and Certified Public Accountants (CPAs) that can answer all your queries related to tax payments. The IRS Hardship Program experts are experienced and wise people who can give you the best and the most accurate advice to help you get through a tax debts situation.

What is the Fresh Start program?

Now known as a Fresh start initiative, the Fresh Start program is a program initiated by the Internal Revenue System that aims towards making tax payments easy for the taxpayers. It is designed to help qualified individuals and small businesses who wish to settle an overdue tax liability and allows them to pay back their debt in small, manageable installments through any of the various payment options provided by the IRS.

How do I negotiate tax debts?

Offer in Compromise is a tax debt settlement solution presented by the IRS. If you have faced a large amount of tax debt that you can’t pay off, OIC can prove to be helpful for you. The OIC allows you to settle your tax debt for less than what you actually owe to the IRS. All you have to do is to apply for the OIC and submit the form to the IRS. With this, you have to submit an application fee of $198 that would be non-refundable. Apart from this, you may also be asked to pay the first month’s installment or 20% of the settlement amount. You can also hire a lawyer to represent you, who will do all the negotiations on your behalf.