Fresh Start Tax Program

What to do if you owe the IRS a lot of money

Does IRS forgive tax debt after 10 years

An IRS Fresh Start Offer in Compromise (or OIC), is an agreement that allows taxpayers resolve tax debts for less than their full amount. It is the best Fresh Start tax relief possible through the Fresh Start Initiative. While an Offer in Compromise is the best way to reduce tax debt through the Fresh Start Program, it does have some limitations. This option is reserved for taxpayers who have difficulty paying their federal tax bills. The OIC program is very strict and not everyone who owes the IRS thousands of dollars will be eligible. With a certified tax relief firm on your side, your chances for obtaining an Offer In Compromise will increase dramatically. Tax experts are skilled in understanding the IRS Fresh Start Program qualifications and will not allow the IRS to pressure or trick you into a less than ideal solution. For more information on how to avoid tax relief scams, please see our "How to Avoid'' section. This will help you to stay clear of fraudulent tax resolution firms when searching for professional tax relief representation. These companies will promise you an OIC but without first analyzing your tax situation and preparing all necessary forms for the IRS. Only the IRS can accept an Offer in Compromise. The right tax relief company should be transparent about the process, have experience in negotiating and getting results on behalf of their clients and will focus their strategies on you and your financial requirements.

The IRS Fresh Start Initiative Program helps taxpayers who owe the IRS pay back taxes and avoid tax liens through various payment plans. The Fresh Start Program is an umbrella term for the IRS’s different tax debt relief options. Changes implemented by the program largely revolved around tax liens, installment agreements, offers in compromise, and currently not collectible charges.

While you wait for the IRS decision on whether to make you an offer of compromise, you can still make payments.

Only those who are eligible for tax relief under the federal Fresh Start Program can receive it. You must prove that your ability to pay your tax balance will cause financial hardship in order to meet the IRS Fresh Start Initiative requirements. Your eligibility for the Fresh Start tax program will depend on how severe your financial hardship is. Although the IRS has some guidelines about what constitutes financial hardship, you or the tax relief company you hire have the sole responsibility of proving it.

Current tax returns will be the most difficult hurdle to clear. To be eligible for the Fresh Start program, you must have all your tax returns up to date. In addition, you will need to have correct amounts of withholdings in the current year. This is the IRS’s way of ensuring that taxpayers can be held accountable. "@type", "Answer", or "text": Since the IRS Fresh Start program's inception back in 2011, the Tax Group Center has been helping people make the most of it. This has allowed us to become very familiarized with the program. Tax Group Center has many options to assist you if you are facing a problem regarding late taxes.

The Fresh Start Program allows taxpayers with back taxes to enter an agreement that stretches out payment over months, though no more than 5-6 years. To qualify, you’ll’ need to provide direct debit payments and:

What is IRS Fresh Start Program

What is IRS Fresh Start Program

You will need to include a $150 application fee and the first payment for your offer in most cases.

"Fresh Start 2020" was a hot search term a few decades ago. However, current economic conditions suggest that there is still interest in this program. Here are a few qualifications that you need to qualify for tax debt reduction:

An IRS Fresh Start Program in Compromise (or OIC) is an agreement that allows taxpayers to reduce their tax debt by paying less than what they owe. This is the best Fresh Start tax relief through the Fresh Start Initiative. An Offer in Compromise can be the best way to reduce your tax debt via the Fresh Start Program. However, there are some conditions. This option is only available to taxpayers in difficult economic circumstances who do not have the financial resources necessary to fully pay their federal tax debt. An OIC is a strict requirement. This means that not all taxpayers who owe thousands to the IRS are eligible for the program. If you have a tax relief company certified, your chances of getting an Offer in Compromise are greatly increased. The IRS will not bully or manipulate tax experts into making a less than optimal solution. To ensure you avoid scams in tax relief, please refer to the "How to Avoid Tax Relief Scams". These companies promise an OIC without first analyzing your tax situation and preparing all necessary forms for the IRS. Only the IRS can approve an Offer in Compromise. The best tax relief company will communicate their process clearly, be experienced in negotiations with the IRS, get results for their clients, as well as center their strategies around your financial needs.

How much will the IRS usually settle for

If you have a large tax debt that you cannot pay immediately, you should learn more about the Fresh Start Program. If you are unable to pay the entire amount but still need financial assistance, this debt relief option may be a good choice.

Although not all people will be eligible for these options, the IRS will work with each individual to determine which relief option is best for you. The Fresh Start program benefits both taxpayers and the IRS.

However, it's possible. This is how an IRS offer-in-compromise works. We explain what you need to do to be eligible and what you need to know about this program.

How much will the IRS usually settle for
What is the most wages can be garnished

What is the most wages can be garnished

Of course, we’ve only touched on the basics of the program. If you have any further questions, would like a firm answer regarding whether you’re eligible for the program or not, or want to apply for the Fresh Start Initiative, don’t hesitate to contact us! Whatever your situation may be, our qualified, experienced, and friendly tax professionals will be able to guide you in the right direction.

You may also be eligible for Fresh Start if your business owes tax. These requirements will apply to you:

The application fee and the first payment must be sent together with the application. The IRS cannot refund this money, even if they reject your offer. However, the IRS will only apply it to your tax bill.

Does IRS forgive tax debt after 10 years
How do you pay off installment loans

In a nutshell, yes! The Fresh Start initiative is beneficial for both the IRS and you as a taxpayer. The IRS wins because they’ll receive some form of payment rather than simply getting ghosted by the taxpayer. The taxpayer wins because they’ll get back in good standing with the IRS, which means they won’t get hit with levies, liens, wage garnishments, criminal penalties, fines, and more.

Without sufficient evidence, the IRS won't accept a request for tax relief through any program in the Fresh Start Initiative. Include as much evidence as you can when you send a request. Documentation is the best way to prove compliance with the IRS Fresh Start Program guidelines. Documentation includes, but isn't limited to, medical statements from doctors, reports from fire departments, reports from insurance companies, statements regarding student loans, and certificates proving the death of family members. Also, we recommend that you include a letter along with your Form-843 explaining your personal situation as well as the reasons why you cannot pay off your outstanding tax debt. You must file all your unfiled or missing tax returns in order to receive tax relief through the Fresh Start Program. Also, your estimated tax payments and current withholdings must also be current. Finally, you must file all of your tax returns for the last six months. A professional tax relief company is the best way for you to stop your request from getting denied. Even if the IRS denies your request, a tax relief agency can help you file an appeal.

You can make payments while you wait for the IRS to decide whether to grant you an offer in compromise.

How much will the IRS usually settle for
Can you negotiate a wage garnishment

After reading through this article, you should understand that the Fresh Start tax initiative is a good idea if you owe the IRS and can’t pay off your tax debt in full.

An IRS Fresh Start Program Offer in Compromise, or OIC, is an agreement that allows taxpayers to resolve their tax debt for less than the full amount they owe. It is the best form of Fresh Start tax relief available through the Fresh Start Initiative.Although an Offer in Compromise is the best option to reduce your tax debt through the Fresh Start Program, the qualifications are strict. This method is reserved only for taxpayers who are in difficult economic situations, and do not have the financial resources to pay off their federal tax debt in full. Due to the strict requirements for an OIC, not everyone who owes thousands of dollars to the IRS will qualify for the program.Your chances of achieving an Offer in Compromise increase tremendously if you have a certified tax relief company on your side. Tax experts have a skillful understanding of the IRS Fresh Start Program qualifications, and will not be bullied or tricked by the IRS into a less-than-optimal resolution.Please refer to our “How to Avoid Tax Relief Scams” section to ensure that you stay away from fraudulent tax resolution companies in your search for professional tax relief representation. These companies will promise you an OIC without first analyzing your specific tax situation and preparing the necessary forms for the IRS. The IRS is the ONLY entity that can approve of an Offer in Compromise. The right tax relief company will be transparent about their process, experienced in negotiating with the IRS and getting results for their clients, and will center their strategies around you and your financial needs.

Currently non-collectible status, unlike the other Fresh Start tax programs, is a status rather than a type of Fresh Start tax relief. If the taxpayer cannot pay their taxes, the IRS has the right to put them in Currently Noncollectible status. Although this status does nothing to remove tax debt, it does end any collection activities. These activities include wage garnishments and bank levies as well as tax liens. Taxpayers can find Fresh Start tax relief with Currently Not-Collectible Status in peace. The IRS will not pursue them. The IRS Fresh Start Program qualification requirements are required to qualify for Currently Collectible Status. These qualifications are discussed below. It is highly recommended that you speak with a tax professional before applying for this status from the IRS. If you attempt to apply for the IRS Fresh Start Initiative Program yourself, the IRS may try to negotiate terms that are more favorable to you. After your Currently Not-Collectible Status expires, the IRS can begin collecting payments again. This will mean that the IRS will continue sending letters and phone calls warning of penalties. A tax relief company will help you remain in Currently Non Collectible Status for as long as possible and can also help you to develop a strategy to leave Non Collectible Status.

Can you negotiate a wage garnishment