IRS Fresh Start Program: As the name suggests the IRS Fresh Start Program or the Offer in Compromise Program has been created by the Internal Revenue Service to provide specialized relaxation schemes to people who have been in debt of taxes. If you file taxes on an income of $70,000, you can be charged a tax amount of 14%. People who do not pay taxes face penalties and charges which are very huge, the past couple of years many have come across as unable to complete their debts. In this article, we will share IRS Tax Debt Relief Scheme to help people who are currently facing debts.
The government department understands how not paying taxes isn’t always a fraud and at times people face genuine losses leading them to face an insolvent business situation as well. While that might be a one-time thing and may repay the taxes along with penalties, many are still fighting the basic requirements of paying back their dues. With the IRS Fresh Start Scheme, the IRS will help you get a hold of the penalties and pay back the sum you owe. As you read further get your notepads ready to keep a check on the schemes that fall under IRS Fresh Start and the Offer in Compromise!
IRS Fresh Start Program
The main group of people who face tax penalties is the middle class, with the pandemic and recession taking a major leap in the country it is obvious that the state expects people to go through fund issues. This is why the IRS offers a fresh start by helping people in debt pay their tax penalties. While many who are in tax debt need the required help in paying their taxes back and such schemes can do wonders.
The are many details that you will need to know about the possibility of an IRS Fresh Start Program. We will not focus on the credentials which we need to follow and as we move further you can get a hold of the details in the overview box below.
IRS Fresh Start Program Overview
IRS Fresh Start Program Overview
|Name||IRS Fresh Start Program 2023|
|Beneficiaries||Tax Debt Candidates|
|How to Apply||As shared in the article|
IRS Fresh Start Program Types
There are five main schemes in the program for all the tax debtors, these are key methods adopted in the program which are the main focus of the IRS and which schemes are allotted per person, and is crucial for the applicants to know about the details. The programs are based on person to person and as a person who is applying for this program you should know the details which are essential to the.
Here are 5 types of the IRS Fresh Start Program:
- Offer in compromise
- Instalment Agreements
- Currently Non-Collectible
- Penalty Abatement
- Innocent Spouse Relief
Tax debt is a serious concern and anyone who faces tax debts can get in touch with the internal revenue service to get a hold of the programs. You can simply avail of the benefits and it will not be a bigger concern for you further. Make sure you choose the correct program from the above-stated.
IRS Fresh Start Eligibility
Following are the IRS Fresh Start Program Eligibility Criteria:
- Annual income to be decreased by 25% with a business or self-employed mode of work. People who are doing jobs and other occupations will not be considered
- Single people with an annual income of less than $100,000
- A married couple with an annual income of less than $200,000
- Tax debt less than $50,000
If you qualify as the tax debtor qualifying under this program. You will provide 5 years to pay your tax debt, these 5 five years will be tax-free and you will not need to worry about the issue as you get time to clear all your debts.
This program is not for all the people who are facing tax debt, the eligibility criteria are very important for the applicants to make sure that the state is not benefiting the fraudulent candidates. People with very high debts face penal charges by the state and thus they will not be counted under this program.
IRS Fresh Start Program Benefits
The 5 different programs provide different benefits based on your requirements. However, the most applied programs will be offered in Compromise and Instalment Agreements. These are the most important two key programs which are held by the programmers. The benefits of the program are stated below:
Offer in compromise: This program has the power to offer you up to 90% tax debt relief. This program has the best benefits and is considered the first choice of many who have tax debt. Since the program has been so frequently applied for the IRS has a very strict policy on who gets the benefits of this program. You will have to hire a tax professional who will have to first analyze the details of your condition himself first and then he will go on to discuss your case in Infront of the department.
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Those who have applied for this program have the capability of getting rid of huge taxes and but the process is slow as this will put you in a requirement long-term background check process as well. But nevertheless, if you are a genuine applier then you need nothing more.
Instalment Agreements (IA): Under the Instalment Agreements IRS Fresh Start Program you can get an allowance to pay your debt in installments for the next 6 years. There will be interest rates changed on this style of program. Basically, if things are creating a mess for you, you can simply take your time and build yourself again to do the needful. Many people who have genuinely lost their business and are causing debts, can manage a smaller amount to be paid regularly. Many also prefer this program since the process to get approval for this one is simpler and does not need a tax professional.
Why Apply to IRS Fresh Start Program
When the state itself wishes to help you, then this means they have faith in the people. This program will simplify your problems and an honest confession will save you weeks of court proceedings!