It allows taxpayers to pay an agreed amount each month to the IRS. These payments go directly to the taxpayer's total tax debt and continue until the debt is paid in full. Once you are enrolled in an installment payment plan, you will no longer receive collection letters from the IRS or be subject to penalties. The program was designed to give first-time tax offenders the opportunity to fix things.
It allows taxpayers to pay off their tax debts over six years with monthly payments that are decided based on how much they currently earn and the value of their liquid assets. Most of the time they finally settle all their outstanding dues within 6 years. New IRS initiative to start helps taxpayers who owe taxes With an installment agreement, you'll pay fewer penalties, but you'll continue to accrue interest on your outstanding balance. To qualify for the new expanded simplified installment agreement, you must accept monthly direct debit payments.
You can establish an installment agreement with the IRS through the Online Payment Agreement (OPA) page at www, irs, gov. With the Fresh Start initiative, the IRS has more flexibility in determining your eligibility and evaluates your collection potential much more favorably. Before Fresh Start, the agency multiplied your discretionary monthly 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 must include your unfiled or missing tax returns, your current estimated tax payments and current withholding taxes in your recent paychecks to qualify for the Fresh Start tax relief program. This means that the number of tax levies fell by more than half during the first five years of the introduction of the Fresh Start program. Those applying for the IRS Fresh Start Program must follow the guidelines set by the IRS for all previous and existing tax returns. Some people unintentionally violate tax laws, so the IRS created the Fresh Start Program (Fresh Start Initiative) to help them.
However, if you don't meet these requirements, you can look for another option to have your tax lien removed, thanks to the Fresh Start initiative. 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. When looking for a backward tax assistance company to help you with the Fresh Start initiative, don't limit yourself to local firms. Through the Fresh Start Program, taxpayers can choose to pay the IRS a regular monthly payment instead of the entire debt all at once.
While the monthly payment you make through the Fresh Start Program may change, the IRS will continue to add interest to your total debt. If you're willing to enter into a dialogue with the IRS through a trusted tax relief advocate, you're taking a step in the right direction, but no matter how many steps you take, your tax problems will never be completely erased, even if you're enrolled in the IRS Fresh Start Program. The IRS Fresh Start Program (also called The Fresh Start Initiative) helps taxpayers who owe the IRS to pay back taxes and avoid tax levies through several plans. While the Fresh Start initiative is not a program you can apply to, it does have specific eligibility requirements that you must meet before you can take advantage of changes in the IRS rules on back taxes.
Once again, the Fresh Start program helps you pay off your tax debt affordably, without the risk of going into debt. This may seem strange at first glance, but of the more than 10 million accounts that are flagged each year, many don't know that the IRS Fresh Start Program exists or immediately give up if they are eligible. Even though thousands of people are informed about the IRS Fresh Start Program every year, many people don't know it exists, or they immediately rule it out as an option. They'll review your case, understand the facts surrounding it, and then sit down with you to discuss your best options, including whether or not you're eligible for the IRS Fresh Start Program.