You may never have heard about the IRS fresh start program, but as you may know, owing the IRS can make you feel quite stressed out and unsettled. It is never an exciting experience to be in debt, more so when you owe that debt to federal or state taxation authorities. Nevertheless, whenever you find yourself in such a situation, instead of panicking and wallowing in it, you should be seeking a way out of it.
Different types of debts leave different options for debtors. For tax debts, the IRS has options that can help you pay back the money that you owe in taxes faster. They have set up payment plans that can assist you by breaking the seemingly insurmountable amount of debt you owe in taxes into smaller bite-sized pieces. Payments for such plans are usually due monthly.
Another great option that is available to tax debtors is the IRS fresh start program. The IRS fresh start program is aimed at assisting individuals who have tax debts. If that is your case, then this program may just be the most suitable option for you. It grants you the option of paying up your tax over a period of time that can last up to six years without incurring additional penalties and interests. We will be talking more about it in the subsequent paragraphs so that you can decide whether or not you think it is a good option for you.
What does the IRS fresh start program involve?
The IRS fresh start program was enacted by the IRS in 2008 and expanded in 2012 to reduce the financial burden on people who had tax debts of up to $50,000. Both businesses and individual taxpayers can access this program.
The IRS fresh start program is a great way to pay off huge debts in full without incurring penalties and costly interests. It involves making payments based on your current income and the value of your liquid assets over the course of up to six years. It is quite simple: every month, you make payments to the IRS based on your income.
Another great thing about the IRS fresh start program is that it helps you avoid unpleasant outcomes like wage garnishments, assets seizure, penalties, interests, and tax liens. The IRS fresh start program offers three payment options and if you owe a tax debt of $50,000 or less, you are welcome to start the IRS fresh start program if you meet other criteria prescribed by the IRS.
Additionally, self-employed taxpayers must provide evidence that their net income has dropped by at least 25%, and are not permitted to earn more than $200,000 per year (for married couples who wish to file for the fresh start program together) or $100,000 for taxpayers who are filing individually.
Understanding whether or not you qualify for the IRS fresh start program (or any other relief program at that) may be quite confusing. Seeking the services of an experienced tax professional may help ease the burden and save you countless hours of frustration. A tax professional will assess your situation properly and advise you on the best possible course of action for your unique situation.
IRS fresh start penalty relief.
Penalties grow very fast. Failure to file or pay your taxes early enough leads to an accumulation of penalties on your account. Through the IRS fresh start penalty relief, you may be able to get the IRS to lessen or completely eradicate any acquired tax penalties.
If you are facing dire tax penalties, the IRS fresh start penalty relief may be your best option. People facing substantial tax penalties for failing to file a tax return on time, failing to pay tax on time, and other related reasons can apply to get their penalties partially forgiven. This will reduce your overall debt.
We are a tax relief firm dedicated to giving you the best results regarding resolving your tax debts. Our team of qualified professionals is available round the clock to provide you with the assistance you need. Contact us now at 888-585-8629 or 617-430-4674 or send us an email at [email protected].
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