If you’re wondering whether the IRS Fresh Start program might help you save money on your back taxes, you’ve come to the right place.
This initiative is intended to assist taxpayers with back taxes and reduce dollars on the dollar. Learn what the IRS Fresh Start Program entails and whether you qualify for this cost-cutting opportunity.
We’ll provide a brief overview of the program, IRS Fresh Start initiatives, and how to get started.
What is IRS Fresh Start?
The goal of the IRS Fresh Start initiative is to reduce debt for taxpayers who owe back taxes. This could be a great opportunity for you if you’re experiencing financial hardship or struggling to pay off your debt.
The Fresh Start initiative is a special program designed to help taxpayers in financial hardship. It allows you to pay your tax debt over time and gives you the opportunity to rebuild your credit score.
How does the IRS Fresh Start Initiative work?
Once you’re enrolled in IRS Fresh Start, a monthly payment will be applied to your tax debt based on your income and family size.
In most cases, there is no penalty for the early cancellation of this agreement. You can also use up to 40% of your disposable income for non-tax debt.
The program is meant to give you a fresh start by allowing you to set up a payment plan for your tax liability or reduce the total cost of your arrears to a more manageable amount.
It also reduces the price of late fees, reducing penalty and interest charges on your existing tax bill.
You can enter into the initiative as long as you owe $50,000 or less and meet the guidelines established by the IRS.
Who qualifies for this program?
You can enter into the initiative if your total tax debts (including interest) do not exceed $50,000, and you owe taxes from 31 December 2016.
If you owe $50,000 or more and meet the Fresh Start guidelines, you must pay at least $25 a month for 48 months to be eligible for this program.
What if your monthly tax bill exceeds $25?
Your initial monthly installment will not exceed 25% of your current monthly income that is subject to tax withholding.
However, Fresh Start does provide you with an allocation of up to 40% of your monthly disposable income for non-tax debt repayment.
For example, if your current monthly income is $4,000 and your creditors are entitled to 25%, this means that the IRS will only require you to pay $1,200 in total taxes each month.
Of this total, you can use up to 40% for non-tax debts (up to $1,440), leaving you with an extra $360 per month that can be used to pay down other consumer debt.
How do I apply for IRS Fresh Start Program?
To join the IRS Fresh Start initiative, call 855-638-4829 to speak with a specialist. You can also download IRS Form 14443 directly from the IRS website, complete it and return it to your local IRS office.
The program lasts for up to five years, or until all of your debts are paid in full.
Just like any other payment plan, there are a few disadvantages to consider. For example, your tax liability will not be resolved faster under this program.
In addition, you’ll have to pay taxes throughout these five years and all interest and penalties associated with it. It also doesn’t prevent future federal tax liens and levies.
Fresh Start can make it easier to handle large tax debts and reduce the total price of your debt–especially if you also have consumer debt like credit cards or medical bills that you want to repay.
A tax agency offers a specialized service for taxpayers that helps them consolidate their back taxes, negotiate with the IRS, set up a payment plan, and find relief from tax debt.
How Tax Assistants company can help?
The Tax Assistants company offers personalized service to people who owe back taxes. Their specialists can offer you free advice on the best way to handle your debt and negotiate with the IRS.
They can also help you set up a payment plan that fits both your needs and budget, as well as find relief from tax debt through an offer in compromise or other solutions.
To learn more about their services, feel free to call 855-638-4829
Penalty Abatement under the IRS Fresh Start Program
If you don’t have enough income to cover your tax bill, it’s possible that after five years, you’ll still owe a large lump sum or may face civil or criminal penalties.
To figure out if this is an option for you, contact The Tax Assistant’s company today! They can help you determine if entering the IRS Fresh Start Initiative Program is a good choice for your tax situation.
The program lasts for up to five years, or until all of your debts are paid in full.
