Get Hold of the Fresh Start Tax Relief Program To Manage Tax Bills
The United States Federal Government established the Fresh Start Program in 2011, also known as the Fresh Start Initiative. The Fresh Start Initiative Program offers tax relief to chosen taxpayers with outstanding IRS debt. It is the federal government’s response to the IRS’s brutal methods, which include using exorbitant interest and financial penalties to punish taxpayers with unpaid tax arrears.
A business qualifies for the IRS Fresh Start Initiative if it can pay off its debt in 24 months or fewer. For example, if a company owes $19,500 to the government and is admitted into the IRS Fresh Start Program 2022 in December, it must pay the government the full amount before October 2025 (the 34th month after December 2022).
Taxpayers who are prepared to settle their tax obligation through payments paid over a set period and determined based on a repayment structure are eligible for the program. The following qualifications are also necessary:
- Having an IRS debt of $50,000 or less, or having the means to pay back the majority of the debt.
- Being able to pay back the debt in five years or less.
- Not having previously missed IRS tax payments.
- Willing to pay according to the direct payment system.
- Submitting their taxes on time for the current tax year.
- Committing to adhering to the terms of the installment agreement, filing taxes on time, and avoiding taking on any new debt during the term of the arrangement.
- Filing an OIC within a year and paying the agreed-upon amount.
Options In Fresh Start Program
It enables taxpayers to pay the IRS a predetermined sum each month. These payments are made in full once the total tax liability owed by the taxpayer has been paid in full.
Offer In Compromise
OIC is a contract that enables taxpayers to settle their tax liability for a portion of what they owe.
Tax Lien Withdrawal
This option is available to taxpayers who are prepared to repay their total obligation by direct debit. In this situation, the taxpayer specifies in writing that they want the money to be taken directly out of their accounts.
There are circumstances when you can fall behind on your tax payment, but with the Fresh Start Program, you can catch up anytime soon.