If you’re in debt to the IRS and looking for relief, you’re not without options. Thanks to the Fresh Start Program, you have resources to turn to to help you get out of debt. This is a legal way to ensure that you avoid IRS penalties while getting your tax obligations resolved.
To learn more about the IRS fresh start initiative, read on and find out how you can access this program and get out of debt.
What Is the Fresh Start Initiative?
The Fresh Start Initiative is a specialized program offered by the IRS to assist taxpayers who owe tax debt. There are different options contained within this program. For example, some might lower or pause your debt, while others allow you to agree to affordable payment plans.
Moreover, this initiative contains specific tax code changes that affect taxpayers like yourself. As such, there are different relief plans that taxpayers can take part in. The IRS established this program back in 2011 to give taxpayers viable solutions for getting back on track with their tax debt.
The goal of the Fresh Start program is to help taxpayers avoid the penalties typically imposed by the IRS. Such penalties include:
- Bank account levies
- Wage garnishment
- Property liens
- Jail time
What’s more, it ensures the IRS gets something in return. Rather than offer nothing to taxpayers and thus get nothing. As a result, the Fresh Start Initiative creates a way for the IRS to collect on what’s owed to them, even if it’s in small payments at a time.
What’s Included in Fresh Start?
The IRS offers several different ways for taxpayers to pay off their debt and enjoy financial freedom. Fresh Start programs include:
- Currently Non-Collectible
- Installment Agreement
- Offer in Compromise
- Penalty Abatement
So as you can see, you have different options to ensure that you can finally resolve your tax debt. These plans will undoubtedly help many taxpayers avoid facing severe penalties. But you must act now and take advantage of your debt via one of the IRS’s Fresh Start programs.
If you have received a notice informing you that an IRS agent has been assigned to your case, you must contact a tax lawyer to assist you. This is a clear indication that the IRS is about to take legal action against you for nonpayment.
Depending on how much you owe, you could have your assets seized, wages garnished, and more. So the sooner you act and take part in a Fresh Start program, the sooner you can get the IRS off of your back.
To determine the most suitable plan for your needs, it’s best to contact a qualified tax firm for assistance. A tax attorney can then help you in figuring out which program is most beneficial to you.
Accessing the Fresh Start Initiative
Thankfully, the Fresh Start Initiative is for everybody. As such, there’s a good chance that you and your tax attorney can find a program that suits your financial needs. But before you decide on a program, you must make sure that you are current on your tax returns.
So if you aren’t up to date on your latest return, you will need to sit down with your tax lawyer and complete your taxes. From there, you can take part in a Fresh Start program as long as your withholdings are the proper amount for this tax year.
Fresh Start Requirements
There are a few other requirements that you must meet to proceed with the Fresh Start Initiative. For instance, if you are self-employed, you must be able to show the IRS that you suffered at least a 25% decrease in your net income.
If you are filing jointly, the IRS stipulates that you can’t make over $200,000 a year to take part in a Fresh Start program. And if you’re filing by yourself, you can’t make over $100,000 a year.
And lastly, you must have a tax balance of less than $50,000 by the end of the year. From there, you will need to choose the most suitable Fresh Start plan. Please note that the IRS won’t automatically assign you to a plan — that’s for you and your tax lawyer to decide.
In Closing
The Fresh Start Initiative is an excellent opportunity to get out of tax debt. To get started, you should contact a qualified tax relief firm. They can assign you a tax attorney who will then help you choose the best Fresh Start solution based on your needs.
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