The IRS Fresh Start Program & Tax Debt Relief Guide

When faced with a substantial federal tax debt stretching into the thousands of dollars, repaying the money owed can appear overwhelmingly tricky. The inclination to delay addressing this issue is vital, often with the hope of a future day when the burden will feel more manageable. However, that day can be today, thanks to recent enhancements to the IRS Fresh Start initiative. The IRS Fresh Start Program, an initiative by the Internal Revenue Service, now presents an achievable avenue for individuals and businesses grappling with tax debt to find relief and move forward.

The primary objective of the Fresh Start Program is to ease the constraints associated with tax debt, presenting three key alternatives:

1. Extended Installment Agreements come with simplified procedures tailored for individual taxpayers. These installment agreements offer a flexible payment plan under the IRS Fresh Start Program.
2. Partial pay installment plans prevent imposing a tax lien if payments are facilitated through direct debit installments and the owed amount remains below $25,000. These plans suit those who cannot pay their full tax balance upfront.
3. Expanded rules for the Offer in the Compromise option include excluding specific assets from the calculation used to determine the settlement amount.

Additionally, the program helps manage large tax bills, providing relief for those who receive significant tax bills they cannot afford to pay immediately.

The IRS Fresh Start Program offers various payment plan options: short-term, long-term, partial, and installment agreements.

These measures aim to assist those burdened by tax debt regain their financial footing. Individuals seeking relief from their tax obligations can find a valuable ally in the IRS Fresh Start initiative. Contacting a tax relief company could provide further support for those needing guidance and assistance navigating these options. The program helps reduce existing tax debts but does not eliminate them.

Effectively capitalizing on the opportunities presented by the Fresh Start Initiative necessitates meticulous attention to intricate details. Numerous taxpayers are denied a resolution about their tax debt due to a lack of awareness regarding what aligns with the IRS’s criteria, either on their part or that of their representatives. A prime example is the diverse methods the IRS permits for ascertaining the fair market value of one’s assets. Failing to grasp acceptable valuation techniques can result in a substantial financial setback, costing thousands of dollars.

It’s essential to recognize that the onus of making an offer lies on you, not the IRS. Consequently, whether your offer will be approved hinges on various factors. While the IRS is unlikely to communicate if it would entertain a lower offer explicitly, historical precedent indicates its reluctance to reject offers on the higher end of the spectrum. This underscores the significance of navigating this process astutely, especially when proving financial hardship to qualify for tax debt relief programs.

Consulting with a tax professional for personalized advice and assistance is crucial to understanding eligibility guidelines and navigating complex IRS programs.

At Lothamer, our seasoned team of CPAs, accomplished tax attorneys, and Enrolled Agents boasts a track record of successfully negotiating hundreds, if not thousands, of Offer in Compromises. Our tax professionals play a vital role in helping individuals prepare and submit offers, file relevant IRS forms, and provide accurate financial reports. When the outcomes don’t align with our expectations, we exhibit a high degree of success in initiating an Appeal. Our commitment is unwavering; we will utilize our expertise to ensure your journey toward a Fresh Start is as smooth as possible, especially when dealing with business tax debt and financial hardships.

The IRS also considers taxpayers for an offer in compromise by easing their calculation for the taxpayer’s future income, showing leniency in approving cases.

Leveraging over 40 years of experience, Lothamer stands as your steadfast ally. We not only elucidate the array of options available to you under the Fresh Start Program but also provide the guidance needed to navigate the complexities of tax debt.