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What Is The IRS Fresh Start Initiative?

What Is The IRS Fresh Start Initiative?

A number of years ago when the economic downturn was in full swing, the IRS realized that taxpayers who owed back taxes were in especially bad positions. In order to offer the public some relief, while at the same time minimizing the use of tax liens and bringing more hope to the actual payment of back taxes, the IRS established the Fresh Start Program. Every so often, the IRS expands on this program and adds some new features which can be particularly beneficial for taxpayers and are worth mentioning.

Among the most noteworthy features of this program includes the ability for tax payers to settle on a debt amount much lower than what is owed in back taxes. To determine qualifications for taking advantage of these benefits, your best bet is to contact a reputable tax attorney who can use knowledgeable expertise to determine your best path to resolution. Working with a professional who is well versed with the IRS requirements pertaining to the Fresh Start Program will ultimately help you reach the most advantageous settlement for your circumstance.

Three Avenues For Tax Debt Relief

Under the Fresh Start Program, the most widely-used method for paying back taxes is through an installment agreement. This easily accessible plan is ideal for those who owe $50,000 or less. You can generally choose the amount of time to make monthly payments, which cannot exceed 72 months. For those who owe more than $50,000 negotiations need to be conducted with the IRS to iron out an installment agreement and furnish financial information. A qualified tax attorney can help in this regard and can also assist you in the following areas:

  • A plan and time frame that eliminates hardship
  • Formulation of a realistic monthly payment amount which is most optimal
  • Any abatements you are entitled to
  • Representation with your best interests

A second method offered under the Fresh Start Program is an offer in compromise. Under this option, taxpayers may be able to settle their debt for less than the full amount owed. Factors that are considered to come up with eligibility for the program include ability to pay, income, expenses, and asset equity. The bottom line is that the government wants to get paid a maximum amount in the shortest possible timeframe; therefore, foreseeable hardship may make an offer in compromise a viable option for some taxpayers.

The third method offered under the Fresh Start Program is penalty relief. Those who can benefit from this initiative predominately include individuals who are unemployed or underemployed. Once eligible for this plan a taxpayer is given a grace period on failure-to-pay penalties, allowing people the flexibility of more time without accruement of extra liability.   Bear in mind, taxpayers must still file returns on time.

Realities About Tax Resolution Companies

There are no shortages of television, radio, and social media ads that claim extraordinary debt reducing results for people who owe back taxes. Given the number of people that owe the IRS money every year, there is little wonder that so many companies claim they are the best at tax resolution.

The reality is that many of these companies misrepresent their abilities to provide tax relief. Some common red flags to be on the lookout for are guaranteed results, large upfront fees, and no face-to-face consultations. The bottom line is that the IRS is an exhausting and tough agency to deal with. Unrealistic promises or insider IRS know-how is a surefire scam in the making.

The lawyers at Dallo Law Group have the experience and understanding of IRS tax relief avenues. Our attorneys not only know the Fresh Start Program well, they are also CPAs making them ideal to help you choose the appropriate plan for your situation. We offer a completely free consultation where we will assess if we can or cannot assist you without any obligations on your part.

The IRS is continually changing and expanding on ways to collect taxes and how it offers easing for the collection of back taxes, and Dallo Law Group makes it a point to keep up-to-date. It can benefit you greatly to contact our office to find out the various ways that the Fresh Start Program can provide you some relief.   We offer a convenient location and can be reached at (619) 795-8000.