A general misconception from many people is that the fresh start program is an unattainable dream, but it’s the furthest from true. The good news is that the IRS fresh start program is entirely legal, and many people are eligible. The IRS Fresh Start Initiative is a simple program introduced by the IRS. This post will answer some of the most often asked issues by taxpayers and whether the IRS is genuinely working on eliminating outstanding tax debt.
What is the IRS Fresh Start Initiative?
The Fresh Start Initiative began as a series of substantial IRS collection policy modifications in 2011 and 2012 to assist taxpayers struggling to pay their back taxes. The most common use is the arrangement of monthly payments and the offer in compromise. To learn more about back taxes, click here.
The Pros of the Fresh Start Program:
First, filing for any options within the fresh start initiative can help you substantially reduce your tax debt. Moreover, you will repay more reasonable and payable monthly amounts, and no money is taken from your wages. Wage garnishments can significantly impair your financial well-being and should be avoided at all costs. In addition, an application for the fresh start program can stop the IRS from foreclosing other assets.
The Cons of the Fresh Start Program
There are many considerations when in tax debt, and while there are many advantages, there are also limitations. For example, when you fail to qualify for an offer in compromise, The tax office could use the information you supplied to them to speed up the debt recollection.
Furthermore, applying for the OIC is a time-consuming procedure that necessitates a large quantity of financial documentation. It can take up to a year before it is authorized, which implies months of payments while it is being reviewed. To seriously apply to any options part of the fresh start program, we strongly advise you to discuss your situation with debt together with a tax professional.
Important to mention is that to be eligible for an OIC, you must keep all business tax form filings up. In addition, a history of bankruptcy proceedings instantly disqualifies you from consideration.
The Fresh Start Program does not Eliminate Tax Debt
While you can contact the IRS through a trustworthy tax relief advocate, the IRS Fresh Start Program special regulations will not entirely resolve your tax difficulties. You’re making the right move by contacting the IRS, but no matter what you do, the IRS may not wholly resolve your tax problems. You must express your sincerity by demonstrating that you take the offense seriously. The IRS anticipates you to be obedient in the future since they give you a lot of leeway. While working on your agreement, you must stay up with your payments while complying.
Submitting Your Application
If you’re late on your taxes, you can also be behind on your books. Getting caught up is frequently daunting and time-consuming, and it’s vital to understand that it can happen to everyone. A knowledgeable financial professional may alleviate this strain, allowing you to focus less on your tax concerns and more on your day-to-day business operations.
We can also put you in contact with one of our renowned tax specialists. They will help you navigate the application process and will answer any issues you may have along the way.
Thousands of taxpayers attempting to catch up on their tax arrears will receive significant help from the Fresh Start program. With this program’s features, many filers may be able to keep or find employment that will allow them to pay off their debts. If you want to know more about what Idealtax can do for you, be sure to contact one of our tax professionals. The first consultation is free!