How much do you have to owe the IRS before they come after you
Without sufficient evidence, the IRS will not accept any request for tax relief under the Fresh Start Initiative. Send as many supporting documents as possible when submitting a request. The best evidence to support the strict IRS Fresh Start Program requirements is documentation. Documentation you will need to include, but is not limited, doctor/medical reports, fire department reports and insurance claims. You also need student loan statements, student loan statements and death certificates from family members. A letter explaining your personal circumstances and the reasons you cannot pay your tax debt should be included with your Form 843. To be eligible for tax relief under the Fresh Start Program, all missing or unfiled tax returns must be filed. Your estimated tax payments must also be current and your withholdings must be accurate. All filings from the past six months must also be correct or current. Contacting a professional tax relief firm is the best way to avoid your request being denied. A tax relief company can assist you in filing a letter of appeal even if your request is denied by the IRS.
See this IRS news release for more information on individual tax provisions of the American Rescue Plan Act of 2021, signed into law on March 11, 2021. The legislation also made changes to tax relief for employers. Continue to check back for updates.
The tax code is REALLY complicated. So many Americans end up in a situation where we owe more to the IRS than we can afford to pay. Lots of people end up with big debts to the IRS. Now we’re in a really tough situation – because the IRS is the world’s most powerful collection agency. They can do some scary things like seize your home or bank accounts, garnish your wages, and a bunch of other things that no other collection agency can do. Your options often look something like this: pay the amount in full, or, pay it back over time with interest and penalties.