Get a Fresh Start with the IRS Fresh Start Program
If paying off your back tax debt seems impossible, the IRS Fresh Start Program may be your key to financial freedom.
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 program acknowledges unexpected financial hardships and self-employed income decline, making it easier for taxpayers to qualify for relief.
The primary objective of the Fresh Start Program is to ease the constraints associated with tax debt, presenting three key alternatives:
- Extended Installment Agreements offer simplified procedures tailored for individual taxpayers. These installment agreements also offer a flexible payment plan under the IRS Fresh Start Program. Staying current with tax filings is crucial to avoid penalties and maintain eligibility.
- 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 and help settle tax debt.
- Expanded rules for the Offer in the Compromise option include excluding specific assets from the calculation used to determine the settlement amount, making it accessible for eligible taxpayers.
Additionally, the program helps manage large tax bills, providing relief for struggling taxpayers 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 that allow taxpayers to pay monthly.
These measures aim to help those burdened by tax debt regain their financial footing. The IRS Fresh Start initiative can be a valuable ally for individuals seeking relief from their tax obligations. Accurate financial details are essential in the application process to ensure eligibility and avoid delays. The program helps manage IRS debt but does not eliminate it.
These fresh regulations might not be guaranteed to last, as the IRS can modify them independently. To secure the necessary assistance for federal tax liens, consult with Lothamer immediately today.
Secure The Necessary Assistance For Federal Tax Liens And Get A Fresh Start Tax Program:
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 explicitly communicate if it would entertain a lower offer, 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 tax attorneys can be crucial in successfully negotiating with the IRS and securing favorable payment terms.
Consulting with a tax professional for personalized advice and assistance is crucial to understanding eligibility guidelines and navigating complex IRS programs. Tax experts deeply understand the IRS Fresh Start Program’s requirements, significantly increasing a taxpayer’s chances of qualifying for reduced tax debt resolution.
At Lothamer, our seasoned team of CPAs, accomplished tax professionals, and Enrolled Agents boasts a track record of successfully negotiating hundreds, if not thousands, of offers 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. The IRS evaluates requests for Offers in Compromise based on various financial factors such as income, expenses, asset equity, and overall economic condition.
Leveraging over 40 years of experience, Lothamer is your steadfast ally. We explain the array of options available under the Fresh Start Program and provide the guidance needed to navigate the complexities of tax debt. Accurate financial documentation is crucial to avoid delays and demonstrate taxpayers’ inability to pay debts, ensuring full compliance with IRS requirements.
Within the first 24–72 hours, we can do more than what most other tax firms do in several weeks.
Step
1
CALL OUR OFFICE To Learn More About Our Process For Getting Same Day Tax Help
For a reasonable fee, we will call the IRS and Request a Stay on Collection, obtain transcripts of years unfiled, balances due, and income reported to the IRS, and provide you with a consultation within three days with a licensed professional, CPA, or Enrolled Agent.
Step
2
MEET WITH A LICENSED CPA, PROFFESIONAL, OR ENROLLED AGENT and Get Your Roadmap to Resolution
Our meeting with you will be virtual, using our proprietary video conferencing software, performed in the privacy of your office, home, or vehicle, with a licensed professional, CPA, or Enrolled Agent to learn about our findings, discuss your options, and provide you with a plan to resolve your tax problem. At this meeting, we will give you an estimated cost for the services to carry out the plan developed.
Step
3
IMPLEMENT THE PLAN Developed in Step 2
Upon accepting the Terms & Conditions in our service agreement as outlined in Step 2, we will immediately start working on solving your tax problem. We will set you up in our eResolution Client Portal, giving you access to critical deadlines and next steps and allowing you to view the progress of your case.
FAQs
The IRS Fresh Start Program is designed to help taxpayers manage and reduce their federal tax debt through more flexible repayment options. It includes streamlined installment agreements, partial pay plans, and relaxed Offers in Compromise settlement guidelines. These changes aim to make it easier for individuals and businesses to repay what they owe and avoid aggressive IRS collection actions like liens or levies.
Eligibility for the Fresh Start Program depends on several factors, including your total tax debt, income level, and ability to pay. Generally, you may qualify if you owe less than $50,000 and are up-to-date with filing all required tax returns. To determine your best options, it’s recommended to consult a tax relief professional who can assess your financial situation and help you apply under the correct guidelines. Demonstrated financial hardship is often necessary to prove an inability to pay tax debt.
An Offer in Compromise (OIC) allows qualifying taxpayers to settle their tax debt for less than the full amount owed. When evaluating your offer, the IRS considers your income, expenses, asset equity, and overall ability to pay. The Fresh Start enhancements have made qualifying easier by excluding certain assets and reducing future income calculations, increasing the likelihood of acceptance for those facing financial hardship.
Working with a tax professional can significantly improve your chances of successfully navigating the IRS Fresh Start Program. Experts like CPAs and Enrolled Agents can guide you through preparing documentation, submitting IRS forms, and negotiating favorable terms. With complex eligibility requirements and strict documentation standards, professional guidance ensures you don’t miss critical details that could delay or deny your relief. The IRS will not file a tax lien unless the amount owed exceeds $10,000, reflecting a more accommodating approach towards taxpayers facing financial difficulties.
Maintaining a consistent payment history is crucial for enrollment, emphasizing the importance of timely payments and how a reliable track record in managing these payments can enhance one’s eligibility. For long-term agreements, additional financial documentation may be required to demonstrate your ability to pay and qualify for various relief options.