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Fresh start8/6/2023 ![]() The Offer in Compromise helps the IRS assess the taxpayer’s ability to pay, and consequently create a suitable payment plan. With the installment plan, a delinquent taxpayer can schedule payments and avoid paying one giant amount. Usually, a Fresh Start requires a taxpayer to save and pay the IRS a big lump sum. There are many options on how to go through a payment plan, so a taxpayer may get a better deal by looking at the IRS Installment Agreement options. Important: Do note that an IRS installment plan may have adjunct fees to it, like the setting-up fees from the IRS or the transaction fees from the bank. This is to help willing taxpayers pay off debts without any undue financial hardship. The payment option may be as long as 72 months or six years. Now, with the Fresh Start program, taxpayers can pay off their tax debts through the different IRS-approved installment plans. ![]() This non-impact trait applies to both federal and state tax liens. Through the Fresh Start program, the maximum amount of tax liability that would merit a Notice Of Federal Tax Lien has been increased from $5,000 to $10,000.Īnd, taxpayers may also waive receiving the said notice if they are going to pay their tax debt via the Direct Debit Installment Agreement.Īgain, it bears repeating that tax liens no longer impact the credit score of a delinquent taxpayer. The government may resort to placing tax liens in an attempt to recover tax payments. Tax Lien Definition: The government’s right to legally hold a property as a means of securing payment for delinquent taxesĪ tax lien represents the government’s legal claim over the assets of a noncompliant taxpayer. Increase in the Tax Liens Threshold A man looks confused while working on his computer. Three Main Features of the Fresh Start Program 1. After around 10 minutes on the site, you can have a rough estimate of whether or not the IRS will accept you in the Fresh Start program. Lastly, for those who want a shorter discussion about the IRS Fresh Start program, you must first check if you pass the Offer In Compromise Pre-Qualifier. Finding an option to settle your tax debt is a lot easier now, as the tax relief options available add more potential ways to mitigate tax debts if the IRS Fresh Start program will not work for you. The IRS Fresh Start program can help deserving taxpayers get back on their feet financially. A taxpayer can raise to the IRS that a smaller tax debt is better than an uncollectible one, and as long as the taxpayer can persuade the IRS of a realistic tax administration plan, the IRS usually accepts, but not always. The IRS simply wants to collect unpaid taxes, not to make life miserable for delinquent taxpayers who have difficulty paying for living expenses. A Primer on the Fresh Start Program Qualifications
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