The Department of Education (ED) announced an initiative called “Fresh Start” to help eligible borrowers in the event of default. A fresh start will continue for one year after the COVID-19 payment break ends. Below is a general fact sheet about the initiative. In the coming weeks, ED will publish separate guidance for guarantee agencies that manage loans from the Federal Family Education Loan Program in arrears.
First, you'll submit all your tax documents to the IRS and explain that you can't pay your debt in full. Then, you'll fill out additional forms that explain your financial situation. The IRS will review everything and then contact you with a reasonable agreement that benefits both parties. The Fresh Start program allows taxpayers with back taxes to enter into an agreement that extends the payment over a series of months, but not more than 5 to 6 years.
To get the Fresh Start tax relief without interference from the IRS, the taxpayer must currently be in a non-collectible state. If you think you could benefit from Fresh Start or if you need an expert tax opinion for your situation, contact Tax Relief USA today for a free tax consultation. While you can talk to the IRS through a trusted advocate for tax relief, 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 is an excellent option for involuntary tax violators because of its flexibility.
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. Unlike other Fresh Start tax programs, non-collectible status is a “state” rather than a form of tax relief. Through the Fresh Start Program, taxpayers can choose to pay the IRS a regular monthly payment instead of the entire debt all at once. You may think that the IRS's Fresh Start initiative seems like a great idea, but you also might not be sure if you qualify for any type of tax relief.
The IRS requires that you be up to date with all tax returns before you are considered for the Fresh Start program. Without a doubt, businesses are eligible for the IRS Fresh Start Program, especially if you're self-employed. 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. They will review your case, understand the facts surrounding it, and then sit down with you to discuss your best options, even if you are eligible or not for the IRS Fresh Start Program.
Fresh Start restores eligibility for federal student aid to nearly 7.5 million borrowers (as of May 31, 2020) to help them obtain their credential or degree; borrowers who do not complete their program of study are at greater risk of default. The IRS knows that not everyone who has tax problems is a serious and intentional offender, and that's why programs like IRS Fresh Start are available.