If you like to find out more about the IRS fresh start program call fresh start tax today. We are comprised of tax attorneys, CPAs, and former IRS agents and managers.
All work is done in-house and we have over 60 years of direct working experience at the Internal Revenue Service. Not only do we have a tax practice but we have a specialty in IRS tax resolution.
IRS Fresh Start Program Helps Taxpayers Who Owe the IRS, want to make a tax settlement or have issues with the Federal Tax Lien.
The IRS Fresh Start program makes it easier for taxpayers to pay back taxes and avoid tax liens. Even small business taxpayers may benefit from Fresh Start.
Here are important features of the Fresh Start program:
The Fresh Start program increased the amount that taxpayers can owe before the IRS generally will file a Notice of Federal Tax Lien.
That amount is now $10,000.
However, in some cases, the IRS may still file a federal tax lien notice on amounts less than $10,000. These usually are on special cases especially on repeater violations.
When a taxpayer meets certain requirements and pays off their tax debt, the IRS may now withdraw a filed Notice of Federal Tax Lien. You can find this form on her website under IRS forms.
Taxpayers must request this in writing using Form 12277, Application for Withdrawal.
Some taxpayers may qualify to have their lien notice withdrawn if they are paying their tax debt through a Direct Debit installment agreement.. Taxpayers also need to request this in writing by using Form 12277.
If a taxpayer defaults on the Direct Debit Installment Agreement, the IRS may file a new Notice of Federal Tax Lien and resume collection actions. All these new federal tax liens are filed automatically and systemically by IRS’s enforcement computer.
The Fresh Start program expanded access to streamlined installment agreements. Now, individual taxpayers who owe up to $50,000 can pay through monthly direct debit payments for up to 72 months (six years). This is a huge improvement from the older system and has given taxpayers some breathing room to pay their tax debt.
While the IRS generally will not need a financial statement, they may need some financial information from the taxpayer. For those larger cases where your debt is over $50,000 you should call us today to work out a payment agreement or a tax settlement.
Taxpayers in need of installment agreements for tax debts more than $50,000 or longer than six years still need to provide the IRS with a financial statement.
In these cases, the IRS may ask for one of two forms: either Collection Information Statement, Form 433-A or Form 433-F. Being a former IRS agent I would recommend that any time a taxpayer is to give IRS a financial statement it is always in their best interest to hire a tax professional because taxpayers have no idea how that information is going to be used and may be used against them.
An Offer in Compromise is an agreement that allows taxpayers to settle their tax debt for less than the full amount. Fresh Start expanded and streamlined the OIC program. The IRS now has more flexibility when analyzing a taxpayer’s ability to pay.
This makes the offer program available to a larger group of taxpayers. Last year over 30% of all offers in compromise were accepted by the Internal Revenue Service.
Generally, the IRS will accept an offer if it represents the most the agency can expect to collect within a reasonable period of time.
The IRS will not accept an offer if it believes that the taxpayer can pay the amount owed in full as a lump sum or through a payment agreement.
The IRS looks at several factors, including the taxpayer’s income and assets, to make a decision regarding the taxpayer’s ability to pay.
Should you have any questions above the aforementioned call Fresh Start Tax LLC and get fast, quick and affordable results. When calling fresh start tax you will speak directly with a tax professional who was an expert in IRS resolution.
IRS Fresh Start Program with Fresh Start Tax LLC