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. 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 its 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. It's worth mentioning that the Fresh Start program isn't really a one-size-fits-all program, but a collection of viable policies and plans offered by the IRS. Even if you think you might not qualify for the IRS Fresh Start Program, a tax relief expert can still help. Those applying for the IRS Fresh Start Program must follow the guidelines set by the IRS for all previous and existing tax returns.
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. The IRS Fresh Start Program (also called The Fresh Start Initiative) helps taxpayers who owe the IRS to pay back taxes and avoid tax liens through several plans. The IRS knows that not everyone who has tax problems is a serious and intentional offender, and that's why there are programs such as IRS Fresh Start available. Undoubtedly, businesses are eligible for the IRS Fresh Start Program, especially if you're self-employed.
Through the Fresh Start Program, taxpayers can choose to pay the IRS a regular monthly payment instead of the entire debt in one fell swoop. If you're willing to enter into a dialogue with the IRS through a trusted advocate for tax relief, 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. You also need to quickly submit all future returns in order to enroll in the Fresh Start program. To get the Fresh Start tax relief without interference from the IRS, the taxpayer must currently be in a non-collectible state.
The IRS will not accept a request for tax relief through the Fresh Start Initiative without sufficient evidence. If you don't want to enroll online, you can always make a proposal for the IRS Fresh Start Program by filling out and submitting an IRS Form 9465, which is available to the IRS government. The Fresh Start provisions give more taxpayers the ability to use simplified installment agreements to catch up with back taxes and also more time to pay. In addition, the IRS made substantial changes to its definition of discretionary income under the Fresh Start initiative.
Like the useful changes in the commitment offer option, the Fresh Start initiative also introduced more beneficial terms for installment payments. .