Owe the IRS ? – The Fresh Start Program from the IRA Helps Taxpayers

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irs tax debt, offer in compromise

How the IRS “Fresh Start Program” Can Help the Taxpayer

If you owe back taxes and want to avoid tax liens then the IRS Fresh Start program will help you.

Installment Agreements:

If you owe back taxes and want to avoid tax liens then the IRS Fresh Start program will help you.

Even small business can benefit from getting a fresh start.

The Fresh Start Program has three features that will help you the taxpayer clean up your debts. Installment agreements, Tax Liens, & Offers in Compromise.

Let’s start with the installment agreements.

irs offer in compromise, irs tax lienIndividuals who now owe up to $50,000 can pay through a direct monthly debit payment up to 72 months. ( 6 years).

The best way to get started with the payment plan is to go to IRS.gov and sign up for the

Online Payment Agreement tool or you can file Form 9465 if you do not have access to the web.

Generally for under $50,000 the IRS will not need a financial statement from the taxpayer.

If you owe more than $50,000 to the IRS or need longer than 6 years to pay you back taxes with the installment agreement then you will need to provide the IRS with a financial statement.

For many taxpayers the “Fresh Start Program” will make it possible to settle with the IRS faster than than you could prior to the “Fresh Start Program”.

If you are a taxpayer who qualifies for the program, you may be able to settle your taxes for significantly less than with out the program.

So You Might Be Wondering:

How do I settle my debts with the “Fresh Start Program”?

When you enroll in the IRS ‘Fresh Start Program” , the IRS allows you easy eligibility rules for installment payments.

Ther may also be some penalty relief by the IRS under this plan.

The plan was started back in 2011 when taxpayers who were out of work and / or struggling to keep up with there taxes do to the bad economy of the Obama administration.

Under the new IRS guidelines, taxpayers will have an easier time qualifying for the installment agreement…

…as the threshold for what you owe has been increased to those who owe $50,000  or less.

With the new guidlines the taxpayer also has up to 72 months to repay the tax debt.

If you choose to use the IRS “Offer in Compromise” plan you mat get a reduced tax bill but you will need to see if you qualify.

Naturally everyone would like to have their IRS tax bill reduced.

Unfortunately the IRS is not always that generous when it comes to taxpayers owing them back taxes.

In order to qualify for an “Offer in Compromise” with the IRS you need to show them these basic conditions:

#1. That there is reason to believe that the IRS would not ever be able to collect the full amount owed (or any amount) from you now or in the forsee-able future.irs tax lien, irs debt relief

The IRS identifies this as “doubt as to collectibility”.

Basically if the IRS sees that you have no way to pay, they will accept whatever they think they can reasonably get out of you.

Like any business they will collect whatever they can, cut their losses and move on.

#2. If under some type of “exceptional circumstances” paying your tax bill would subject you to “unfair”, or “economic hardship”.

#3 There is also a third rarely used consideration that the IRS calls “Doubts as to Liability”.

This is basically a claim by the taxpayer that the IRS has made a mistake on the amount the taxpayer owes.

If you want to pursue this type of claim you need to file form 656-L.

If you would like to see if you are eligible for an “Offer in Compromise” you can use the IRS’s

online Pre Qualifyer Tool.

Discounts From the IRS?

The famed economist Milton Friedman once said: “There is no free lunch in America”.

He must have been referring to the IRS when he said that.

And this author states: “Be careful what you ask for.”

irs debt, tax debt, pay irs back taxes, When you request to enroll in the “Offer in Compromise” program the IRS  will request all of your financial documentation:

  • pay stubs
  • vehicle registrations
  • bank statements
  • and everything else they can think of.

 

The point is this. Just filling out the form is only the beginning of a long, exhustive,

time consuming  journey of documentation that the IRS will be requesting of you.

But here is the kicker:

Once you submit your financial life history to the IRS,

If you do not qualify for the “Offer in Compromise” they can now use all of your financial documents against you to find more taxes to pay them.

Remember, while you are in the process of working with the IRS…

… the time consummed to provide them with all of your documentation,

the clock on your debt’s interest payments is still ticking.

Meaning that by the time you are told “yes” or “no” you may end up owing the IRS more in interest than what you started with.

So What’s the Bottom Line?

Before you try to settle with the IRS on your own, do your homework.

The US Tax code is 70,000 pages long.

Unless you are a tax expert, the chances are good that they will know the tax code a lot better than you.

Level the playing field and get a professional IRS tax consultant.

Almost every debt repair company offers a free consultation.

At a minimum you should get a free consultation,

from a professional IRS tax specialist.

Everybody’s situation is unique.

There is no one size fits all solution.

A professioanl IRS tax specialist,

who in many cases worked for the IRS,

and deals with these problems everyday,

will have a much better perspective on how to solve your IRS tax problem than a non professional or even just an accountant or CPA.

If you are looking for a professional IRS debt consultant you might consider Cura Debt.

They are a highly rated, award winning company with years of experience in resolving all types of debt issues.

They have a whole team of ex IRS employees that specialize on IRS tax issures, including IRS tax liens.

In many cases the Cura Debt IRS tax specialist may even know the IRS person on the other end of the phone.

Now:

Whether use decide to seek the help of a professional IRS tax specialist or go the “do it yourself” route, you need to take action NOW!

The worst thing you can do is to be in denial and not confont your tax problem head on.

The IRS is not going to go anywhere. They are not going to just forget about your debt.

The longer you put off addressing your situation, the more your problems and interest will compound on itself.

Please take action now and get this issue resolved.

The sooner you bite the bullet, and get this tax problem resolved…

… the sooner you can move on to a better debt free life and start to rebuild your finances.

I wish you all the luck.

irs tax installment plan,irs tax lien

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