> How Much Is The IRS Fresh Start Program ?

• Taxpayers who are struggling to pay their taxes can be helped by the IRS Fresh Start Program. It offers a range of options to help taxpayers get back on track with their taxes, including installment agreements, offers in compromise, and penalty relief. The cost of the program varies depending on the specific option a taxpayer chooses, but the goal of the program is to make it easier and more affordable for taxpayers to pay their taxes and avoid tax liens and other enforcement actions.

How Much Is The IRS Fresh Start Program?
Fresh Start Initiative

> What Is The Fresh Start Program ?

• The Fresh Start Program by the IRS is an initiative to help taxpayers who are having trouble paying their taxes. In response to the economic downturn, it was introduced in 2011; it has been updated several times since then to expand its reach and provide more assistance to taxpayers. The program offers a range of options, including installment agreements, offers in compromise, and penalty relief, to help taxpayers get back on track with their taxes. It is designed to make it easier for taxpayers to pay their taxes and avoid tax liens and other enforcement actions.

How Much Is The IRS Fresh Start Program?
Fresh Start Initiative

> How Does The IRS Fresh Start Program Work ?

>> The IRS Fresh Start Program is designed to help people who are having trouble paying their taxes. It offers a range of options to help taxpayers get back on track with their taxes, including installment agreements, offers in compromise, penalty abatement, and currently non-collectible status. Here is an overview of how each of these options works:

Installment agreements:

• Taxpayers can make monthly payments towards their tax debt with an installment agreement. If the taxpayer pays their tax debt in full, the IRS will generally allow them to make smaller monthly payments than they would have to. Offers in compromise:

• An offer in compromise: Allows people to pay back taxes in installments and avoid the hassle of doing so for the full amount they owe. Depending on the taxpayer's financial situation and the amount of their tax debt, the terms of an offer in compromise can vary.

• Penalty abatement: This is a process that allows a taxpayer to have certain penalties that have been applied to their tax debt removed or reduced. This can be a helpful option for taxpayers who are unable to pay their taxes on time due to financial hardship or other extenuating circumstances.

Currently non-collectible status:

• If a taxpayer cannot pay their tax debt, they can be placed in a non-collectible status. This means that the IRS will temporarily stop collection actions against the taxpayer.

• To take advantage of the Fresh Start Program, a taxpayer must contact the IRS and provide information about their financial situation. The IRS will then determine which options are available to the taxpayer and help them choose the best option for their situation.

> What Is A Tax Lien ?

• A tax lien is a legal claim that the government can place on a taxpayer's property, including their real estate and personal belongings, if they do not pay taxes. Tax liens allow the government to seize property and sell it to pay off back taxes.

• Tax liens are usually filed when the taxpayer hasn't taken action to pay the debt after receiving multiple notices from the government. The public record of the liens can affect the taxpayer's credit score and make it difficult to borrow money or sell their property.

• The Fresh Start Program offers options, such as installment agreements and offers in compromise, that can help taxpayers avoid tax liens. By agreeing to a payment plan or settling their tax debt for less than the full amount, a taxpayer can avoid having a lien placed on their property and protect their credit score.

> How To Avoid Tax Lien ?

• The best way to avoid a tax lien is to pay your taxes on time and in full. However, if you find yourself facing an unpaid tax bill, the IRS may be willing to work with you. Exploring payment plans, penalty abatement, or offers in compromise may be possible to avoid having a federal tax lien placed on your property.

• Additionally, you can minimize the inconvenience of a tax lien by filing form 12277, which requests that a lien be withdrawn if it is creating economic hardship for you. Speaking with a tax professional may also help to identify other avenues to avoid or resolve a tax lien.

• Lastly, it’s important to remember that the IRS may still send you a notice of discharge showing that the debt has been paid when a lien is released. Carefully tracking your tax obligations and payments can help to ensure that no liens are placed on your property without your knowledge.

> How Do You Qualify For The IRS Fresh Start Program ?

>> The IRS Fresh Start Program is designed to help taxpayers in financial hardship. To qualify, you must:

  • Be an individual taxpayer (not a business) with a federal tax debt that you cannot pay in full.
  • Have filed all required past and current tax returns or have received extensions from the IRS.
  • Not have any unresolved tax issues that involve unnecessary penalties or interest.
  • Have a regular source of income to pay off the tax debt over time.
  • Agree to direct-debit payments from your bank account if you are enrolled in an installment agreement with the IRS.

If you meet all of these criteria, you may be able to qualify for the IRS Fresh Start Program. To learn more about your options, contact a qualified tax professional who can help you evaluate the best course of action for your situation.

> Final Thought:

The IRS launched the Fresh Start Program to help taxpayers who are having trouble paying their taxes. It offers a range of options, including installment agreements, offers in compromise, and penalty relief, to help taxpayers get back on track with their taxes. The cost of the program varies depending on the specific option a taxpayer chooses, but the goal of the program is to make it easier and more affordable for taxpayers to pay their taxes and avoid tax liens and other enforcement actions.