The simplified installment agreement is a popular option in the Fresh Start Program. It allows you to pay off your debt within 72 months or the statute of limitations for collection, whichever is shorter. You can apply for this payment plan online, by mail, or by calling the IRS. The IRS's new Fresh Start initiative helps taxpayers who owe taxes With the Fresh Start initiative, the IRS has more flexibility in determining their eligibility and evaluates their collection potential much more favorably.
Before Fresh Start, the agency multiplied its monthly discretionary income by 60, or five years, when calculating how much it could charge you. Now, the IRS multiplies your income by just 12 or 24, which means it can normally settle your back taxes for much less. You also need to quickly submit all future returns in order to enroll in the Fresh Start program. While an installment agreement is a valid form of Fresh Start tax relief, it's difficult to reach an agreement with the IRS for a reasonable monthly payment.
While a compromise offer is the best option to reduce your tax debt through the Fresh Start Program, the requirements are stringent. Currently, the non-collectible status allows taxpayers to find the Fresh Start tax relief in peace, without being prosecuted by the IRS. Whether you qualify for Fresh Start options, such as an installment plan, a withdrawal of a tax lien, or a commitment offer, or this program can help you manage your debts effectively and, at the same time, resolve problems such as stopping the wage garnishment and eliminating taxes. While the IRS Fresh Start initiative offers an easier way for taxpayers to address back taxes, it's not always easy to navigate the program on your own.
To meet the requirements of the IRS Fresh Start Initiative, you must be able to show that paying your tax balance would cause you significant financial difficulties. If you have problems with back taxes and are concerned about being up to date (and keeping) up to date with your tax payments, you may qualify for assistance under an IRS initiative called Fresh Start. Like the useful changes in the commitment offer option, the Fresh Start initiative also introduced more beneficial terms for installment payments. Those applying for the IRS Fresh Start program must follow the guidelines set by the IRS for all previous and existing tax returns.
The IRS Fresh Start initiative expanded several programs to help taxpayers struggling with outstanding tax debts. According to the Treasury Inspector General for Tax Administration, the Fresh Start initiative has already been a big help to hundreds of thousands of taxpayers. If you try to apply for the IRS Fresh Start Initiative on your own, the IRS will try to get you to accept the terms that are most favorable to them. An IRS Fresh Start compromise offer, or OIC, is an agreement that allows taxpayers to resolve their tax debt for less than the full amount they owe.