If you owe back taxes contact us today to hear about the various tax solutions to immediately and permanently help reduce your tax debt on your back taxes.
The new IRS fresh start program or fast start tax initiative that IRS is offering  is a series of various programs to help taxpayers who owe back tax debt deal with back tax problems. While everybody has their own individual situation by speaking to us we could put together an individual plan that will help you move forward so you can stop the anxiety and worry that dealing with these back tax issues cause.

The Process of Back Taxes Help – How the government deals with back taxes

There’s a very particular format  the Internal Revenue Service exercises in dealing with tax payers that owe back taxes.
You should know that the Internal Revenue Service is going to make sure that all your prior tax returns are filed and you are current in the present tax year of all withholding requirements.
This process is used by the Internal Revenue Service is called a full compliance check and is necessary on each case that is worked by the service center or by an IRS agent. It is critical before contacting the Internal Revenue Service you start the process of filing back tax returns if they are not currently filed.
IRS will want a current Financial Statement, Form 433-F.
IRS is then going to want to secure a current financial statement from you that reflects income and your current living expenses.
Internal Revenue Service will expect this financial statement to be fully verified proving all income and all necessary living expenses.
Internal Revenue Service will ask you to fill out a form 433F and either send or fax it to them along with all current documentation. You need to make sure the Internal Revenue Service receives this information before your last IRS bill or IRS notice L-1058.
If you do not contact the IRS prior to the expiration date of this letter you can expect the IRS to send out a bank levy, wage garnishment and possibly file the federal tax lien.
The Internal Revenue Service will also ask for your last pay stub, the last 3 to 6 months worth of bank statements and a complete explanation of all expenses taken on your financial statement.
You should be aware that the Internal Revenue Service has a national, regional and geographical expenses standards.
It is critical you familiarize yourself with this program or you will be in for a complete shock when IRS only allows you certain necessary living expenses.
After IRS fully reviewed your current financial statement they will make a determination on how they will deal with your case and as a general rule they fall into three categories.
Based on your financial statement the Internal Revenue Service may determine:

• that you are currently going through an economic tax hardship and they will place your case into a currently noncollectable file.
• The Internal Revenue Service may  determine that you can make monthly or current installment payments, or
• the Internal Revenue Service may tell you that you are a suitable candidate for the offer in compromise or the settlement program on back taxes.

Some of the the new programs offer by the IRS and back taxes to help you the taxpayer.

 
The goal of the IRS is to help individuals and small businesses meet their tax obligations, without adding unnecessary burden to taxpayers.
Specifically, the IRS is announcing new policies and programs to help taxpayers pay back taxes and avoid tax liens.
The changes include:

• Significantly increasing the dollar threshold when liens are generally issued, resulting in fewer tax liens.

• Making it easier for taxpayers to obtain lien withdrawals after paying a tax bill.

• Withdrawing liens in most cases where a taxpayer enters into a Direct Debit Installment Agreement.

• Creating easier access to Installment Agreements for more struggling small businesses.

• Expanding a streamlined Offer in Compromise program to cover more taxpayers.

The New Tax Lien Thresholds

The IRS will significantly increase the dollar thresholds when liens are generally filed.
The new dollar amount is in keeping with inflationary changes since the number was last revised.
Currently, liens are automatically filed at certain dollar levels for people with past-due balances. We understand that that new balance limitation is $10,000 total.
A federal tax lien gives the IRS a legal claim to a taxpayer’s property for the amount of an unpaid tax debt. Filing a Notice of Federal Tax Lien is necessary to establish priority rights against certain other creditors.
Usually the government is not the only creditor to whom the taxpayer owes money.
A lien informs the public that the U.S. government has a claim against all property, and any rights to property, of the taxpayer. This includes property owned at the time the notice of lien is filed and any acquired thereafter.
A lien can affect a taxpayer’s credit rating, so it is critical to arrange the payment of taxes as quickly as possible.
 

Tax Lien Withdrawals

The IRS will also modify procedures that will make it easier for taxpayers to obtain lien withdrawals.
Liens will now be withdrawn once full payment of taxes is made if the taxpayer requests it. The IRS has determined that this approach is in the best interest of the government.
In order to speed the withdrawal process, the IRS will also streamline its internal procedures to allow collection personnel to withdraw the liens.
 

Direct Debit Installment Agreements and Liens

The IRS is making other fundamental changes to liens in cases where taxpayers enter into a Direct Debit Installment Agreement (DDIA). For taxpayers with unpaid assessments of $25,000 or less, the IRS will now allow lien withdrawals under several scenarios:
Lien withdrawals for taxpayers entering into a Direct Debit Installment Agreement.
The IRS will withdraw a lien if a taxpayer on a regular Installment Agreement converts to a Direct Debit Installment Agreement.
The IRS will also withdraw liens on existing Direct Debit Installment agreements upon taxpayer request.
Liens will be withdrawn after a probationary period demonstrating that direct debit payments will be honored.
In addition, this lowers user fees and saves the government money from mailing monthly payment notices. Taxpayers can use the Online Payment Agreement application on IRS.gov to set-up with Direct Debit Installment Agreements.
 

Installment Agreements and Small Businesses

The IRS will also make streamlined Installment Agreements available to more small businesses. The payment program will raise the dollar limit to allow additional small businesses to participate.
Small businesses with $25,000 or less in unpaid tax can participate. Currently, only small businesses with under $10,000 in liabilities can participate. Small businesses will have 24 months to pay.
The streamlined Installment Agreements will be available for small businesses that file either as an individual or as a business. Small businesses with an unpaid assessment balance greater than $25,000 would qualify for the streamlined Installment Agreement if they pay down the balance to $25,000 or less.
Small businesses will need to enroll in a Direct Debit Installment Agreement to participate.
 

Offers in Compromise or Tax Debt Settlements on Back Taxes

The IRS is also expanding a new streamlined Offer in Compromise (OIC) program to cover a larger group of struggling taxpayers.
This streamlined OIC is being expanded to allow taxpayers with annual incomes up to $100,000 to participate. In addition, participants must have tax liability of less than $50,000, doubling the current limit of $25,000 or less.
OICs are subject to acceptance based on legal requirements.
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.
Generally, an offer in compromise 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.

Back Taxes Help – Miami, Ft.Lauderdale, Palm Beaches – Affordable Tax Representation – South Florida