1. Important Details Concerning Fresh Start Initiative
Remarkably, the IRS Fresh Start Initiative is not just a single program, but rather a series of modifications that the IRS has made to the tax code to reduce tax bills. In fact, the IRS has initiated several programs around the Fresh Start to help struggling taxpayers since 2011.
This makes it simpler for individuals who owe back taxes to pay the IRS, without having a lien placed on a vehicle or home. Even more, this initiative has recently expanded in 2019 to assist more people struggling with tax bills.
The programs and initiatives gives collection alternatives in order to help reduce debt. Altogether, these changes are what make up the Fresh Start Initiative.
Surprisingly, the Fresh Start IRS regulations have actually been in place for many years.
The current program is the Fresh Start Initiative, but its former name is the Fresh Start Program. Both of these have tried to help taxpayers reduce their tax bills and prevent liens against their property.
The first program started in 2008 as a response to the Recession. In 2012, the IRS changed the program, making it easier for the unemployed and those in financial difficulty to reduce taxes owed. Relief can come in the form of eliminating late fee penalties for those that owe taxes for a current year, or the IRS may agree to forgive past debts.
2. The Fresh Start Initiative Can Help, Depending on Your Situation
These principles were put in place to draw the attention of individuals and businesses to enter into arrangements with the IRS. As a result, this will offer them the chance to pay back taxes, avoid liens and enter into a beneficial agreement with the government body.
In addition, the IRS wants to get taxpayers out of its collection queue and receive taxes owed. With that understanding, the Fresh Start Program achieves this by setting up realistic payment schemes, withholding penalties, and avoiding or withdrawing liens.
For example, the Fresh Start Program raised the threshold for a lien from $5,000 to $10,000. Taxpayers can also apply to have a lien withdrawn when their taxes owed are less than $25,000, and they concur to automatic installment payments.
Simply put, there are options. Within the IRS Fresh Start Initiative program, there are several tools available to aid struggling individuals and small businesses pay off and/or get rid of some of their debt. Ultimately, the goal is to offer citizens the opportunity to pay taxes without liens and excess fees.
3. Fresh Start Initiative Qualification
Everyone is eligible to qualify provided they jump through a few tax hoops.
The Fresh Start Program has therefore made helpful changes in favor of taxpayers who can jump through a few financial hoops before applying. Firstly, taxpayers need to get current. That means they have the accurate amount of withholdings for the current fiscal year. When the time comes to file taxes in April or October 2019, taxpayers looking at taking advantage of the Fresh Start Program cannot have a new balance due. This is because the IRS will not grant defaulters a break if they are going to end up back in their collection inventory.
In addition, owing taxpayers must also have filed all past tax returns usually going back six years. The IRS will not consider anyone to be current if they have any unfiled tax returns, so will not sit down to negotiate under the Fresh Start Program.
These steps also go far in proving to the IRS that taxpayers do not have sufficient money or assets to pay their tax debt in full but are ready to work with them to get back into good standing. Lastly, anyone who is presently in or pursuing a bankruptcy will not be qualified for any Fresh Start initiatives.
4. Tax Penalties
The program can aid you in evading penalties, and discovering existing ones if not approached in the right manner.
As explained above, the Fresh Start program also offers taxpayers chance to avoid tax liens by fixing the amount owed at $10,000 before the IRS can file a Notice of Federal Tax Lien against them. What’s more, if a lien is in place, taxpayers can apply to have it withdrawn if they enter into an Installment Agreement or have gotten their debt below the $10,000 cut off. This is a considerable benefit to individuals or businesses that are looking to sell an asset and want to prevent proceeds ending up in the IRS’s hands.
Furthermore, another Fresh Start Program option that is just like the Offer in Compromise is Tax Penalty Relief. Taxpayers who are facing considerable tax penalties (which can add up to 40% of the total owed), can apply to have their penalties partially forgiven, reducing their overall debt. The penalties that fall under this relief program include ones for failing to file a tax return on time, failure to pay taxes on time and others.
5. Negotiating With the IRS
The process of negotiating with the IRS isn’t easy. Much less get them on the phone in under an hour.
The Fresh Start Program is without charge, but there are fees that do apply depending on what part of the program taxpayers are attempting to access. For example, those applying for an Offer of Compromise must pay a $186 filing fee as well as 20% of owed back taxes. In this way, the Fresh Start Program might not be a feasible option for those taxpayers in terrible financial straits.
In these circumstances, taxpayers might consider working with a skillful tax attorney who is ready to get the basis ready before taking payment. This is also a good plan when it comes to negotiating with the IRS. Their motive is to have taxpayers pay their back taxes in a lump sum when most taxpayers who are in arrears could never afford to do so.
Importantly, a professional like Global Gate can help prove to the IRS that taxpayers meet the criteria for various Fresh Start Program options and negotiate their specific terms. Remarkably, it is worth it to pay some money to a professional tax attorney before filing a tax return or providing financial statements that the IRS can use against a taxpayer looking for some tax relief. One wrong step and a taxpayer can find themselves exempt from Fresh Start Program options and at the compassion of the IRS.
The information given above on the Fresh Start Initiative should encourage taxpayers to tackle their tax debt head-on. Furthermore, there are choices which will help them get some relief from the constant pressure of owing money to the government. 1. Important Details Concerning Fresh Start Initiative
Remarkably, the IRS Fresh Start Initiative is not just a single program, but rather a series of modifications that the IRS has made to the tax code to reduce tax bills. In fact, the IRS has initiated several programs around the Fresh Start to help struggling taxpayers since 2011.
This makes it simpler for individuals who owe back taxes to pay the IRS, without having a lien placed on a vehicle or home. Even more, this initiative has recently expanded in 2019 to assist more people struggling with tax bills.
The programs and initiatives gives collection alternatives in order to help reduce debt. Altogether, these changes are what make up the Fresh Start Initiative.
Surprisingly, the Fresh Start IRS regulations have actually been in place for many years.
The current program is the Fresh Start Initiative, but its former name is the Fresh Start Program. Both of these have tried to help taxpayers reduce their tax bills and prevent liens against their property.
The first program started in 2008 as a response to the Recession. In 2012, the IRS changed the program, making it easier for the unemployed and those in financial difficulty to reduce taxes owed. Relief can come in the form of eliminating late fee penalties for those that owe taxes for a current year, or the IRS may agree to forgive past debts.
2. The Fresh Start Initiative Can Help, Depending on Your Situation
These principles were put in place to draw the attention of individuals and businesses to enter into arrangements with the IRS. As a result, this will offer them the chance to pay back taxes, avoid liens and enter into a beneficial agreement with the government body.
In addition, the IRS wants to get taxpayers out of its collection queue and receive taxes owed. With that understanding, the Fresh Start Program achieves this by setting up realistic payment schemes, withholding penalties, and avoiding or withdrawing liens.
For example, the Fresh Start Program raised the threshold for a lien from $5,000 to $10,000. Taxpayers can also apply to have a lien withdrawn when their taxes owed are less than $25,000, and they concur to automatic installment payments.
Simply put, there are options. Within the IRS Fresh Start Initiative program, there are several tools available to aid struggling individuals and small businesses pay off and/or get rid of some of their debt. Ultimately, the goal is to offer citizens the opportunity to pay taxes without liens and excess fees.
3. Fresh Start Initiative Qualification
Everyone is eligible to qualify provided they jump through a few tax hoops.
The Fresh Start Program has therefore made helpful changes in favor of taxpayers who can jump through a few financial hoops before applying. Firstly, taxpayers need to get current. That means they have the accurate amount of withholdings for the current fiscal year. When the time comes to file taxes in April or October 2019, taxpayers looking at taking advantage of the Fresh Start Program cannot have a new balance due. This is because the IRS will not grant defaulters a break if they are going to end up back in their collection inventory.
In addition, owing taxpayers must also have filed all past tax returns usually going back six years. The IRS will not consider anyone to be current if they have any unfiled tax returns, so will not sit down to negotiate under the Fresh Start Program.
These steps also go far in proving to the IRS that taxpayers do not have sufficient money or assets to pay their tax debt in full but are ready to work with them to get back into good standing. Lastly, anyone who is presently in or pursuing a bankruptcy will not be qualified for any Fresh Start initiatives.
4. Tax Penalties
The program can aid you in evading penalties, and discovering existing ones if not approached in the right manner.
As explained above, the Fresh Start program also offers taxpayers chance to avoid tax liens by fixing the amount owed at $10,000 before the IRS can file a Notice of Federal Tax Lien against them. What’s more, if a lien is in place, taxpayers can apply to have it withdrawn if they enter into an Installment Agreement or have gotten their debt below the $10,000 cut off. This is a considerable benefit to individuals or businesses that are looking to sell an asset and want to prevent proceeds ending up in the IRS’s hands.
Furthermore, another Fresh Start Program option that is just like the Offer in Compromise is Tax Penalty Relief. Taxpayers who are facing considerable tax penalties (which can add up to 40% of the total owed), can apply to have their penalties partially forgiven, reducing their overall debt. The penalties that fall under this relief program include ones for failing to file a tax return on time, failure to pay taxes on time and others.
5. Negotiating With the IRS
The process of negotiating with the IRS isn’t easy. Much less get them on the phone in under an hour.
The Fresh Start Program is without charge, but there are fees that do apply depending on what part of the program taxpayers are attempting to access. For example, those applying for an Offer of Compromise must pay a $186 filing fee as well as 20% of owed back taxes. In this way, the Fresh Start Program might not be a feasible option for those taxpayers in terrible financial straits.
In these circumstances, taxpayers might consider working with a skillful tax attorney who is ready to get the basis ready before taking payment. This is also a good plan when it comes to negotiating with the IRS. Their motive is to have taxpayers pay their back taxes in a lump sum when most taxpayers who are in arrears could never afford to do so.
Importantly, a professional like Global Gate can help prove to the IRS that taxpayers meet the criteria for various Fresh Start Program options and negotiate their specific terms. Remarkably, it is worth it to pay some money to a professional tax attorney before filing a tax return or providing financial statements that the IRS can use against a taxpayer looking for some tax relief. One wrong step and a taxpayer can find themselves exempt from Fresh Start Program options and at the compassion of the IRS.
The information given above on the Fresh Start Initiative should encourage taxpayers to tackle their tax debt head-on. Furthermore, there are choices which will help them get some relief from the constant pressure of owing money to the government.