Owe Back Taxes – New IRS Tax Policies on Tax Debt Resolutions
The Internal Revenue Service has come up with new tax policies to help taxpayers struggling with back tax debt different solutions to help remedy there financial situation
The new IRS fresh start initiative is directed at penalty relief, installment agreements, federal tax liens and the offer in compromise program that own known as the tax debt settlement program with the Internal Revenue Service.
If you need help because you owe back taxes to the federal or state government, call us today and we can explain the new tax policies to you and you can find out how you can make a payment arrangements,  be placed in economic tax hardship or possible settle the case  with an offer in compromise.
The process is simple.
We take a financial statement, a IRS form 433f  and within  minutes we can make a determination or recommendation that best suits your financial needs. We have worked thousands of cases and understand the exact protocol to completely  resolve  IRS cases that both satisfy the Internal Revenue Service and the financial needs of the client.
The Internal Revenue Service has made owing back taxes a much easier process, this is been a very long time coming but we have helped many taxpayers through this process. Our years of experience can make this a seamless and painless process for taxpayers owing back taxes.
Our goal at fresh start tax is to have our clients go through this process worry and pain free.
We are comprised of tax attorneys, tax lawyers, certified public accountants, former IRS agents, managers and tax instructors.
We have over 60 years of working directly for the Internal Revenue Service.
We are A+ rated by the Better Business Bureau and have been in private practice since 1982.
 

 The following four tips explain the expanded relief for taxpayers.

 
Penalty Relief Part.
These initiative relieves some unemployed taxpayers from failure-to-pay penalties. Penalties are one of the biggest factors a financially distressed taxpayer faces on a tax bill. The Fresh Start Penalty Relief Initiative gives eligible taxpayers a six-month extension to fully pay 2011 taxes.
Interest still applies on the 2011 taxes from April 17, 2012 until the tax is paid, but you won’t face failure-to-pay penalties if you pay your tax, interest and any other penalties in full by Oct. 15, 2012.
The penalty relief is available to two categories of taxpayers:
1. Wage earners who have been unemployed at least 30 consecutive days
during 2011 or in 2012 up to this year’s April 17 tax deadline,
2. Self-employed individuals who experienced a 25 percent or greater
reduction in business income in 2011 due to the economy.
To qualify for this penalty relief, your adjusted gross income must not exceed $200,000 if married filing jointly or $100,000 if your filing status is single, married filing separately, head of household, or qualifying widower.
Your 2011 balance due can not exceed $50,000.
Taxpayers who qualify need to complete a new Form 1127A to request the 2011 penalty relief.
Installment agreements.
An installment agreement is a payment option for those who cannot pay their entire tax bill by the due date.
The Fresh Start provisions give more taxpayers the ability to use streamlined installment agreements to catch up on back taxes and also more time to pay.
The new threshold for requesting an installment agreement has been raised from $25,000 to $50,000. This option requires limited financial information, meaning far less burden to the taxpayer.
The maximum term for streamlined installment agreements has been raised to six years from the current five-year maximum.
If your debt is more than $50,000, you’ll still need to supply the IRS with a Collection Information Statement (Form 433-A or Form 433-F). You also can pay your balance down to $50,000 or less to qualify for this payment option.
With an installment agreement, you’ll pay less in penalties, but interest continues to accrue on the outstanding balance. In order to qualify for the new expanded streamlined installment agreement, you must agree to monthly direct debit payments.
 
Offer in Compromise.
Under the first round of Fresh Start in 2011, the IRS expanded the Offer in Compromise (OIC) program to cover a larger group of struggling taxpayers. An Offer in Compromise is an agreement between a taxpayer and the IRS that settles the taxpayer’s tax liabilities for less than the full amount owed.
The IRS recognizes many taxpayers are still struggling to pay their bills so the agency has been working on more common-sense changes to the OIC program to more closely reflect real-world situations.
Generally, an offer will not be accepted if the IRS believes that the liability can be paid in full as a lump sum or through a payment agreement. The IRS looks at the taxpayer’s income and assets to make a determination regarding the taxpayer’s ability to pay.
It is important to remember that no two cases are the same.
Until a  tax firm looks at your individual financial statement, they cannot value or judge the case that you have.
Before signing a retainer agreement with any firm check out their Better Business Bureau rating, their credentials, and asked to speak to the person that will be directly handling your case.
It is in your best interest to make sure they have a true tax professionals on staff.
 

Owe Back Taxes – New IRS Tax Policies to Help Taxpayers