> Do You Qualify For IRS Fresh Start ?

• Are you wondering if you are eligible for the IRS Fresh Start Program ? With tax season looming, you may be feeling overwhelmed by the prospect of filing taxes. This can be especially daunting when money is tight and unpaid back taxes have started to pile up.

• Fortunately, the Internal Revenue Service offers relief options that make it easier to manage your debt - and one of them is called the Fresh Start Program. In this post, we'll explain what qualifies as an IRS Fresh Start so you can understand how this program could help relieve your tax burden.

• By learning more about this program, you will equip yourself with knowledge about tax resolution methods and paths toward financial freedom.

Do You Qualify For IRS Fresh Start?
            What is the Fresh Start Program?

> What Is A Fresh Start Program ?

The IRS has several relief programs available to help taxpayers who are struggling with debt, known as the Fresh Start Initiative. These programs can help reduce or eliminate penalties, set up installment payment plans, offer compromises on what is owed, or declare someone currently not collectible status.

It can be tricky to know which tax program is right for you if you're not up-to-date with the current laws and regulations. We suggest talking to a professional before making any decisions.

Do You Qualify For IRS Fresh Start?
            What is the Fresh Start Program?

> How Does Fresh Start Program Work ?

>> The Fresh Start Program offers four programs to eligible taxpayers, which are as follows:

Installment Agreement

• Instead of having to come up with a lump sum payment, the Fresh Start Program from the IRS lets taxpayers spread out their payments through a monthly installment plan. This is an option for anyone who owes taxes and can't pay back what they owe all at once.

• Every month, set aside a specific amount to go towards your overall tax liability. These payments will continue until you have paid back the entire sum that you owed. When you sign up for an installment plan with the IRS, they will stop sending collection letters and penalizing you.

• If you want to qualify for the Fresh Start Program, the IRS needs to see that you're committed to repaying your debt. Although your monthly payments might differ each month, the interest on your debt will keep increasing, which means eventually you'll owe more than what you originally owed.

Offer In Compromise

• The IRS offers a way to settle your tax bill if you owe money, called an offer in compromise (OIC). This is an agreement between the IRS and the taxpayer that resolves all outstanding tax liabilities. The RCP, or reasonable collection potential, is an amount calculated by officials to determine if an individual can pay their taxes in full. This calculation is based on income and assets.

• OICs (offers in compromise) must meet certain legal requirements for acceptance.

Currently Non-Collectible Status

• The "Current Non-Collectible Status" is not a form of Fresh Start tax relief or something that the IRS provides to taxpayers who cannot pay taxes.

• Non-Collectible Status stops the IRS from sending threatening letters, wage garnishments, tax liens, and bank levies. When you choose non-collectible status, the IRS can't penalties and you get a "Fresh Start" with your taxes.

Penalty Abatement

• Although you have not paid the taxes in full, you are eligible to request a First Time Abate for the penalty. The Failure to Pay Penalty will continue unless the tax is fully paid.

• If you owe the IRS money and can't pay, there are a few options for Penalty Abatement: visiting a federal campus, using an automated system, or speaking to local personnel.

> How To Be Eligible For IRS Fresh Start Program ?

>> If you are self-employed and have seen a drop in your earnings of at least 25%, you may be eligible for the IRS' Fresh Start Program. To qualify:

  • Single Applicant your yearly income must be $100,000 or less.
  • For married couples filing jointly, the combined annual income cannot exceed $200,000.
  • Lastly, your total tax debt should not go over $50,000 to meet the program's requirements.

You may be able to take advantage of the Fresh Start Program if you meet a few specific requirements. The Fresh Start Program has several advantages, including lower monthly bill payments and the option to extend your payment plan. If you're not sure if you qualify for the program, contact the IRS so they can help guide you through the process.

> How Do You Apply For A Fresh Start With The IRS ?

• If you want the IRS to grant you any type of tax relief through the Fresh Start Initiative, be prepared to provide supporting documentation. It's better to over-share evidence than leave them wanting more, so give as much information as possible. Just remember that qualifying for these types of programs can be tricky, so your proof needs to be ironclad.

• The best way to increase your chances of having your request for waiver approved is by including a letter with Form 843. This letter should go into detail about your circumstances and explain why you're unable to pay the outstanding tax debt. Some other things that might be helpful are the death certificates of family members, doctor or medical statements, student loan statements, and insurance claims.

• The Fresh Start Program provides tax relief, but only for those who ensure their filings are accurate and up-to-date. This means filing all missing or unfiled tax returns from the past six months as well as current estimated taxes and withholdings.

• If you use the services of a professional tax relief company, it is more likely that your request will be accepted.

> What Are The Requirements For IRS Fresh Start Program ?

If you qualify for the Fresh Start program, you are eligible to apply for any of the programs listed below.

>> For Individuals:

  • If your tax debt is $50,000 or below, you may qualify for this program.
  • All income tax returns that are required have been filed.
  • Filed taxes on time and without issue for the last several years.

>> For Business Owners:

  • If your tax debt is less than $25,000.
  • Ensure that all federal tax filings and payments are up to date.
  • If you have not run into any trouble with the IRS in the past.

If you are self-employed, your income must have decreased by at least 25 percent in the past year to qualify.

> Final Thought:

• You may qualify for the IRS Fresh Start program if you meet certain criteria. The best way to find out is to speak with a tax professional about your specific situation. They can help you determine if you’re eligible and what steps to take next.