Information On Fresh Start Tax Program

Discover valuable information on the Fresh Start Tax Program, a government initiative designed to help individuals and businesses overcome tax problems. Learn how this program can provide relief, negotiate settlements, and establish payment plans, allowing you to start anew and regain control of your finances. Find expert guidance and resources to navigate the Fresh Start Tax Program successfully.

The Internal Revenue Service (IRS) can be daunting, especially when facing tax debts or other financial obligations. However, the IRS has developed a compassionate approach towards taxpayers who are struggling with their tax debts. This approach is aptly named the Fresh Start Tax Program. This article aims to explore what the Fresh Start Tax Program is, who should utilize it, its benefits, and its associated costs.

What is the Fresh Start Tax Program?

The Fresh Start Tax Program is an IRS initiative launched in 2011. It was developed to help struggling taxpayers get back on track with their tax obligations. The program includes revised procedures for installment agreements and offers in compromise (OICs), which allow taxpayers to settle their tax debts for less than the full amount they owe. The Fresh Start Tax Program aims to provide taxpayers a "fresh start" with their tax obligations, hence its name.

Who should utilize the Fresh Start Tax Program?

The Fresh Start Tax Program is specifically designed for taxpayers who are having a hard time paying their tax debts. If you are facing a financial hardship that prevents you from paying your tax liabilities, this program may be beneficial for you. This includes individuals, small businesses, and the self-employed. The key is to understand that the IRS is willing to work with taxpayers to address their tax liabilities, rather than enforcing aggressive collection actions.

Benefits of the Fresh Start Tax Program

The Fresh Start Tax Program offers numerous benefits. First, it makes it easier for taxpayers to negotiate installment agreements with the IRS, allowing them to pay their tax debts over time. Second, the program expands access to OICs, enabling more taxpayers to settle their tax debts for less than the full amount they owe. Moreover, the Fresh Start Tax Program can stop IRS collections and protect your wages. Through this program, the IRS has increased the threshold for liens and levies, meaning fewer taxpayers will face these tough collection actions.

Cost 

The cost of the Fresh Start Tax Program varies depending on the specific agreement you reach with the IRS. For an installment agreement, there is a setup fee ranging from $31 to $225, depending on your income and whether you apply online, by phone, or by mail. For an OIC, there is a $205 application fee, although low-income taxpayers may be exempt from this fee. It's important to remember, however, that these costs are often outweighed by the financial relief provided by the program.

Offers 

Several unique offers are worth mentioning in relation to the Fresh Start Tax Program. First, the "100% Online & Over The Phone" service allows taxpayers to apply for the program and handle their tax issues without leaving their homes. This service is especially beneficial in the current pandemic environment, where face-to-face interactions are limited. Second, the "Free Consultation" offer gives taxpayers the chance to discuss their tax issues with qualified tax experts. These experts can provide advice on whether the Fresh Start Tax Program is the right solution for their tax problems. Lastly, the "Stop IRS Collections & Protect Your Wages" offer signifies the program's ability to halt aggressive IRS collection actions and safeguard taxpayers' wages.

The Fresh Start Tax Program is an invaluable initiative from the IRS aimed at helping struggling taxpayers. It provides a lifeline to those facing financial hardships, allowing them to settle their tax debts in a manageable way. With benefits such as stopping IRS collections and protecting wages, along with the convenience of "100% Online & Over The Phone" service and "Free Consultation" with qualified tax experts, it's clear that the Fresh Start Tax Program is a significant tool for taxpayers. It's always encouraged to seek professional advice when dealing with tax issues. The key is not to ignore your tax debts, but to confront them and explore the options available to you, including the Fresh Start Tax Program.