How To Reduce Your Tax Debt With The IRS Fresh Start Program?
Struggling to keep up with your tax debt? Don’t think you have enough money saved up to pay it off? You might be eligible for the IRS Fresh Start Program – a program that can help you reduce and even eliminate your tax debt. Keep reading to find out more about how this program works and if it can help you get back on track with your taxes!
Introduction to the IRS Fresh Start Program
The IRS Fresh Start Program is a great way to reduce your tax debt. The program offers a number of benefits, including:
– Reduced interest rates on your tax debt
– An extended payment plan for your tax debt
– A lower monthly payment for your tax debt
– A waiver of the late payment penalty for your tax debt
If you are struggling to pay your taxes, the IRS Fresh Start Program can help you get back on track. The program is designed to make it easier for taxpayers to pay their taxes and avoid defaulting on their tax debt. For more information on the IRS Fresh Start Program, visit the IRS website or speak with a tax professional.
What is an Offer in Compromise?
An Offer in Compromise (OIC) is an agreement between a taxpayer and the IRS that settles the taxpayer’s tax liabilities for less than the full amount owed. The fresh start program IRS makes it easier for taxpayers to qualify for an OIC.
The IRS will consider your offer if you can show that:
– You cannot pay your full tax liability, or
– Paying your full tax liability would create a financial hardship, or
– The amount you offer reasonably reflects what the IRS believes it could collect from you.
To qualify for an OIC under the Fresh Start Program, you must:
– Have filed all required tax returns,
– Be current on all tax payments (including estimated taxes and any required installments), and
– Not be in an open bankruptcy proceeding.
Who is Eligible for the IRS Fresh Start Program?
The IRS Fresh Start program is available to taxpayers who owe $50,000 or less in taxes. This includes any combination of tax debt, penalties, and interest. To be eligible, you must also meet one of the following criteria:
– Have filed all required tax returns for the past six years
– Not currently be under an IRS payment plan or another form of tax relief
– Not have had a tax lien filed against you in the past six years
If you owe more than $50,000, you can still apply for the Fresh Start program if you agree to a payment plan with the IRS. The payment plan must be for 60 months or less and you must make all payments on time.