The Fresh Start Initiative IRS Program
When the IRS considers forgiving tax debt, the present financial condition of the taxpayer is the biggest factor in resolving the debt. The IRS cannot collect more than a taxpayer can pay.
If any collection action by the IRS would force a taxpayer debtor into a financial crisis, the IRS cannot collect the back taxes.
Taxpayers that have the resources to pay only a partial amount of their tax debt can apply for the IRS government payment plan called an Offer in Compromise (OIC) to resolve the remainder. Often times this program can resolve the debt for a fraction of the total amount due.
According to the financial capacity of the taxpayer, the IRS significantly reduces the total debt to an amount that the taxpayer can pay. The reduced amount can be paid in a lump sum or in fixed monthly installments.
To make it easier for taxpayers to qualify and use the OIC, the IRS has expanded the Fresh Start initiative program. Under the new, more flexible rules, taxpayers do not have to disclose extensive financial details to the IRS to judge their paying ability making it easier to qualify for the program.
The Fresh Start Initiative for OIC Offers Taxpayers The Following Advantages!
- The IRS now looks at only one year of future income for offers if they are paid in five or fewer months when calculating a taxpayer’s reasonable collection potential. This is down from the previous four years looked at. For agreements of six to 24 months, the IRS now looks at two years of future income instead of the previous five years. This makes it easier to qualify for the frest start initiative program.
- Taxpayers are now allowed to make their student loans’ minimum payments for post-high school education loans guaranteed by the federal government.
- Taxpayers may, under certain conditions, pay their delinquent federal and state or local taxes in monthly installments if they cannot pay it in full.
- The standard allowance for the Allowable Living Expense amount has been expanded. This allowance now includes credit card payments, bank fees and charges, and other miscellaneous allowances.
Whats the next step?
The first step towards successful resolution is to acknowledge that your tax debt will continue to grow and the easiest way to resolve it is to seek professional assistance.
Our firm of tax professionals has helped thousands of individuals and businesses just like you stop forced collections and finally resolve their tax debt.
Fill out the form above or give us a call and one of our Tax Resolution Agents will help you navigate through the Fresh Start Initiative IRS Program and get your tax issues resolved.