Fresh Start Tax Program

Fresh Start Tax Program

fresh start tax program

The IRS Fresh Start Tax Program or IRS Fresh Start Tax Initiative are two specific terms which have been wildly promoted by both radio and TV ads over recent years. This long-term goal of the Fresh Start tax initiative has been to offer taxpayers with a more flexible and more beneficial terms and a longer period of time to repay their tax debts by establishing an installment agreement (payment plan) to repay the tax debt over a longer period of time. Many citizens have found this very beneficial as they are able to take advantage of the relief provided from paying back taxes in a longer period of time. Others have also found the Fresh Start Tax Program to be less aggressive when it comes to recovering unpaid taxes, but that is by no means a general feature of the program. For those citizens who qualify for the fresh start tax program, one of the biggest benefits is being able to eliminate one-time-only penalties and interest on back taxes. For those with delinquent taxes, they will be pleased to learn that the penalty can be completely eradicated. This leaves you with nothing more than the interest and penalties that were assessed and are due. While not everyone will qualify for this elimination, many do, including: discharged bankruptcies, minor personal debts, child support debts, civil suits against the taxpayer, tax liens and bankruptcy. Individuals who owe more than half of their total disposable income to the IRS are also qualified for the fresh start tax program.

Fresh Start Tax Program Benefits

Another benefit of the fresh start tax program is the ability for taxpayers who owe the IRS more money to get out from under the financial hardship they have incurred to eliminate their financial obligations. One major reason that a taxpayer is considered “in financial hardship” is if they are behind in their monthly obligations to the IRS. If you meet this qualification, then you might qualify to have your back taxes completely eliminated or at least reduced. This relief is most often granted to individuals who have several months or more to pay their delinquent taxes, have experienced an increase in their medical expenses, or have incurred a huge amount in tax debt. All of these circumstances, while certainly difficult to overcome, can be easily alleviated through the use of the IRS’ tax relief programs. There are a number of other benefits that come with this fresh start tax program, one of which is the opportunity to pay back some or all of the tax debt owed to the IRS in a lump sum. The lump sum would equal the current tax debt amount as well as the interest that would have accrued over time. For some taxpayers, this amount could be anywhere between one and five thousand dollars. An important benefit to being granted this fresh start is the taxpayer is not required to pay back the lump sum in full; rather the IRS would continue to lend the remaining amount until the outstanding balance has been completely paid off.

The success rate of the Fresh Start Tax Initiative is quite high, especially considering the fact that many people fear filing their returns because they feel they may fail. In many cases, this is indeed the case, since the majority of taxpayers who are granted tax relief do not properly understand how to file their returns. The IRS is eager to give taxpayers advice on how to avoid filing for too many years, and it also wants to help solve the problem by giving tax payers options for reducing their tax liabilities over time. Some options, the IRS gives tax filers under the Fresh Start Tax Initiative include property assessments and professional financial consultation. Some people may have the wrong idea, but there is really no need to worry about the potential tax debt relief offered by the IRS if one meets the other requirements. To qualify for the Fresh Start Tax Initiative, a taxpayer must be in an acceptable tax debt situation. He or she must also meet other eligibility requirements. Some of these requirements include having a sufficient monthly income, being able to afford his or her debts, and meeting other requirements that are determined by the Internal Revenue Service. Although qualifying under the Fresh Start Tax Initiative is not perfect, there are many taxpayers who have seen their taxes forgiven or their penalty abatement orders reduced by appealing to the tax agency. If you can meet the other requirements, it is highly likely that you could qualify for relief from paying back taxes that have accumulated due to the burden of past due payments.

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