Fresh Start Tax LLC A Professional Tax Firm with a Nation Wide Tax Practice “A” Rated by the Better Business Bureau Since 1982
Most of the individual and businesses that Fresh Start Tax LLC deals with cannot full pay their back tax liability and payments must be made to the Internal Revenue Service.
There are different option available to the taxpayers depending on the facts, circumstances and the dollar amount owed on each and every case.
Please note all tax returns need to be filed and up to date.
By calling our office or setting up a free phone interview or free consultation we can discuss with you the best settlement option to relieve you of your tax problems
Different types of Internal revenue Service Payment Options:
1.Guaranteed Agreement Payment
This pay agreement with the Internal Revenue Service is available to individual taxpayers only who owe less than $10,000, are not able to pay the liability in full, and have not had an Installment Agreement under this provision or allowance within the last (5) five years. You must be able to satisfy the tax liability in three years. No financial statement is required, although the IRS may request one. This agreement applies to income tax or unpaid out of business employment taxes only. If the case is in the local branch office and a Revenue Officer is assigned to the case, the IRS Agent usually will request a 433A financial statement.
2 Streamlined Agreement Payment ( under $25,000 )
This type of Installment Agreement is available to taxpayers who owe less than $25,000 and are not able to pay the full amount. The taxpayer must also agree to completely satisfy the liability and keep all other taxes current over the five-year term of the agreement. As with the guaranteed agreement, financial information is usually not required and the agreement applies to income tax or out of business employment taxes only. See above statement for cases being in the local IRS office.
3. High Dollar Agreement Payments ( over $25,000 )
This agreement is designed for taxpayers who owe more than $25,000 and are not able to pay the liability in full. The IRS understands that you may need more time than is allowed under the guaranteed or streamlined agreement programs. Under the high dollar plan, you must agree to fully satisfy your liability prior to the expiration of the statue of limitations( statutes are usually 10 years from the dates of assessment) or agree to a one-time extension of the statute of limitations for up to five additional years, as well as to keep all taxes current in the interim. High dollar installment agreements require a full and complete financial disclosure. The taxpayer will have to complete a 433F or a 433A. If the taxpayer is a corporation, the IRS will require complete financial disclosures from all officers and some employees of the company. Documentation will be required on all financial statements.
4. Partial Payment Agreement
Under this plan, the IRS agrees to accept installment payments that will result in a partial payment of the tax liability. To qualify for a Partial Payment Installment Agreement (PPIA), you must provide complete financial information that will be reviewed and verified. You will also be required to address equity in assets that can be utilized to reduce the outstanding liability.
If you are granted a Partial Payment Plan Agreement, you will be subject to a financial review every two years for the duration of the agreement. If your financial condition has improved, the amount of your payments could increase or the agreement could be terminated. If your financial condition has deteriorated, the amount of your payments could be decreased.
IRS may review these cases whenever they wish and usually they place a mandatory follow up review date ensuring the case will come back out to the field in the future.
Should you have any questions please call Fresh Start Tax LLC today for a free phone or video consultation.
