Now, to help a greater number of taxpayers, the IRS has expanded the program by adopting more flexible compromise offer terms. The program offers taxpayers three payment options to settle their tax debts legally and satisfactorily. In the process, it helps them avoid sanctions and future interests that can lead to financial problems. New IRS initiative to start helps taxpayers who owe taxes With the Fresh Start initiative, the IRS has more flexibility in determining their eligibility and evaluates their collection potential much more favorably.
Before Fresh Start, the agency multiplied its discretionary monthly income by 60, or five years, when calculating how much it could charge you. Now, the IRS multiplies your income by just 12 or 24, which means it can normally settle your back taxes for much less. The IRS Fresh Start Initiative, often referred to as the Fresh Start Program, is an expansion of existing tax relief programs created to help taxpayers address their tax debt problems. The tax relief programs offered under the initiative include the reduction of fines, installment payment agreements, the commitment offer (OIC) and the currently non-collectible status (CNC).
If you're a business owner, you must also make all required federal tax deposits for this quarter. You can easily check your eligibility using the pledge offer prequalification tool at the IRS, gov. While the Fresh Start initiative is not a program you can apply to, it does have specific eligibility requirements that you must meet before you can take advantage of changes in the IRS rules on back taxes. To meet the requirements of the IRS Fresh Start Initiative, you must be able to show that paying your tax balance would cause you significant financial difficulties.
The Fresh Start provisions give more taxpayers the ability to use simplified installment agreements to catch up with back taxes and also more time to pay. If you have problems with back taxes and are concerned about being up to date (and keeping) up to date with your tax payments, you may qualify for assistance under an IRS initiative called Fresh Start. According to the Treasury Inspector General for Tax Administration, the Fresh Start initiative has already been of great help to hundreds of thousands of taxpayers. If you try to apply for the IRS Fresh Start Initiative on your own, the IRS will try to get you to accept the terms that are most favorable to them.
Whether you qualify for Fresh Start options, such as an installment plan, a withdrawal of a tax lien, or a commitment offer, or this program can help you manage your debts effectively and, at the same time, resolve problems such as stopping the wage garnishment and eliminating taxes. Under the IRS Fresh Start Program, you may be eligible for first-time penalty reduction (FTA) if: (you have no penalties in the last three tax years), (you are current at the time you file your return) and (you) have paid or made arrangements to pay your tax bill. The Fresh Start initiative is a comprehensive set of options with relatively clear eligibility requirements and improved strategies for saving. The IRS Fresh Start program offers tax debt options that make it easier and less onerous for individual and small business taxpayers to catch up with their back taxes.
If you're wondering if the IRS Fresh Start program can help you save on your back taxes, you're in for a pleasant surprise. The IRS has made it easier than ever for individuals and business owners to qualify for the Fresh Start Initiative. When looking for a backward tax assistance company to help you with the Fresh Start initiative, don't limit yourself to local firms. The IRS will not accept a request for tax relief through any of the Fresh Start Initiative programs without sufficient evidence.
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