Struggling with tax debt? The IRS Fresh Start initiative brings good news, offering taxpayers the opportunity to rectify their financial situation and reduce tax liability. If you want to discuss your eligibility for the IRS Fresh Start program in Dallas and Fort Worth, consulting with a reliable tax attorney is advisable. To get you up to speed, in this blog, we will provide an overview of the IRS Fresh Start program.
What is the IRS Fresh Start Initiative?
The IRS Fresh Start initiative is a tax relief program, launched in 2011, designed to alleviate the tax burden on taxpayers. It includes various relief programs that provide individuals with ways to legally settle their tax bill, giving them a fresh start with their tax obligations. Whether you're facing a tax debt due to a first time mistake or overwhelmed by tax liabilities, the IRS Fresh Start tax relief program may be your savior.
How Does the IRS Fresh Start Program Work?
The IRS Fresh Start Program is not a singular solution but a set of programs designed to assist taxpayers struggling with tax debt to find a more manageable way to settle their obligations. While the Fresh Start Program offers relief options, eligibility for each provision is not guaranteed for everyone. Factors such as the amount owed, financial situation, and compliance with tax filings that determine eligibility are considered by the IRS to determine eligibility. Taxpayers interested in the program should consult with a tax professional to determine the best course of action based on their specific circumstances.
IRS Fresh Start Program Available to Taxpayers
- Installment Payment
The Fresh Start Program broadens the eligibility criteria for streamlined installment agreements, making it easier for more taxpayers to qualify. Specifically, in some cases, tax lien will be withdrawn if a taxpayer agrees to Direct Debit Installment Agreement. Installment payment option allows individuals to gradually pay off their tax debt over a specific period through manageable monthly payments. - Offer in Compromise (OIC)
Significant changes have been introduced to the Offer in Compromise program, enhancing accessibility for taxpayers. An OIC enables eligible individuals to settle their tax debt for less than the full amount owed, particularly if paying the full amount would result in financial hardship. - Penalty Abatement
The Fresh Start Program offers penalty relief for certain taxpayers, particularly those who have experienced prolonged unemployment. The IRS may waive specific penalties, providing a more affordable way for individuals to catch up on their taxes. - Currently Not-Collectible Status
This temporary relief option, known as Currently Not-Collectible (CNC) status, is determined by the IRS when a taxpayer's financial situation makes it impossible to cover basic living expenses and pay their tax debt.
How a Fort Worth Tax Attorney Can Facilitate the IRS Fresh Start Program
The IRS Fresh Start initiative is a commendable resource for alleviating the tax burden on individuals. While the program offers significant benefits, navigating its complexities and qualifying the eligibility criteria can be challenging. A trusted IRS tax attorney in Fort Worth possesses the necessary knowledge and expertise to adeptly navigate the intricacies of the IRS Fresh Start program. They play a pivotal role in assessing your eligibility, assisting with the requisite documentation, and negotiating with the IRS on your behalf. Consult with a leading tax attorney to secure your financial stability and effectively leverage the advantages of the IRS Fresh Start program.
