IRS Fresh Start Program – get help now with your tax problems.
If you have tax debt and are having a hard time paying off your back taxes, take advantage of the IRS Fresh Start Program. This program makes it easier for taxpayers to negotiate with the IRS and get out of IRS debt. It is unknown for how long it will last, so it is a good idea to start the process of resolving your tax debt.
The three main changes to IRS tax laws introduced by the IRS Fresh Start Program include:
- Higher thresholds for tax Liens and ability to withdraw tax liens
The IRS agreed to stop issuing tax liens to anyone with under $10,000 in back taxes. Also, you can now request (through form 12277 Application for Withdrawal) that your tax lien be removed if you fit into one of two scenarios: (1) you paid your tax lien in full or (2) you enter into a direct debit installment agreement. See more about Tax Lien Withdrawal requirements on the IRS website.
- Expanded access to streamlined installment agreements
Before the IRS Fresh Start Program initiative, the IRS would not allow you to qualify for the installment payment program until you provided detailed financial statements. With these financials, you would have to show the IRS that you could not afford to pay them in full or that you needed a payment plan. Now, individual taxpayers who owe up to $50,000 can pay through monthly direct debit payments for up to 72 months (six years) without submitting a financial statement.
There is also a new test program that was extended allowing individual taxpayers owing an assessed balance between $50,001 and $100,000. The payment terms are over 84 months with financials not required if a direct debit or payroll deduction is put in place. If not put in place, then a financial statement is required. See Forms 433F and 433A.
If you owe more than $100,000 or need more than 72 or 84 months to pay off your tax debt, financial statements are required.
- Expansion of the Offer in Compromise Program
This IRS Fresh Start program allows you to negotiate your debt with the IRS and offer a settlement amount of less than you actually owe. The Fresh Start changes make it easier to qualify for an IRS Offer in Compromise giving the IRS additional flexibility in the way they determine whether a taxpayer is qualified.
For anyone struggling with large levels of IRS back taxes debt, it is highly advisable to hire a tax attorney to help you deal with your outstanding debt. It is becoming increasingly difficult to negotiate with the IRS, even with the IRS Fresh Start Program.
Taxpayers needing assistance in dealing with IRS tax problems should seek the advice of a knowledgeable tax attorney. The Los Angeles Tax Attorneys at Delia Law have many years of tax resolution experience and will competently represent you before the IRS. Please call for a no-cost tax attorney consultation for tax resolution at (310) 494-0100. We look forward to helping you.
This blog post is not intended as legal advice and should be considered general information only.
Keywords: IRS problems, IRS Fresh Start Program, tax lien withdrawal, back taxes, IRS debt, offer in compromise