The IRS Fresh Start program makes it less demanding for citizens to make good on back government obligations and maintain a strategic distance from charge liens. Indeed, even private company & small business taxpayers may profit by Fresh Start. Here are three essential highlights of the Fresh Start program:
- Installment Agreements. The Fresh Start program extended access to streamlined portion understandings. Presently, taxpayers who owe up to $50,000 can pay through month to month coordinate charge installments for up to 72 months (six years). While the IRS by and large won’t require a budgetary explanation, they may require some money related data from the taxpayers. The most straightforward approach to apply for an installment plan is to utilize the Online Payment Agreement instrument at IRS.gov. On the off chance that you don’t have Web get to you may document Form 9465, Installment Agreement, to apply.
Taxpayers in need of installment agreements for tax debts more than $50,000 or longer than six years still need to give the IRS a financial statement. In these cases, the IRS may request one of two structures: either Collection Information Statement, Form 433-An or Form 433-F.
- Tax Liens. The Fresh Start program expanded the sum that taxpayer can owe before the IRS by and large will document a Notice of Federal Tax Lien. That sum is presently $10,000. Nonetheless, sometimes, the IRS may at present document a lien see on sums under $10,000.
At the point when a taxpayer meets certain necessities and makes good on off their government expense obligation, the IRS may now pull back a recorded Notice of Federal Tax Lien. taxpayer must demand this in composing utilizing Form 12277, Application for Withdrawal.
A few taxpayer may fit the bill to have their lien see pulled back on the off chance that they are settling their tax debt through a Direct Debit portion understanding. Citizens likewise need to ask for this in composing by utilizing Form 12277.
In the event that a citizen defaults on the Direct Debit Installment Agreement, the IRS may record another Notice of Federal Tax Lien and resume accumulation activities.
- Offers in Compromise. An Offer in Compromise is an agreement that allows taxpayers to settle their tax debt for less than the full amount. Fresh Start expanded and streamlined the OIC program. The IRS now has more flexibility when analyzing a taxpayer’s ability to pay. This makes the offer program available to a larger group of taxpayers.
Generally, the IRS will accept an offer if it represents the most the agency can expect to collect within a reasonable period of time. The IRS will not accept an offer if it believes that the taxpayer can pay the amount owed in full as a lump sum or through a payment agreement. The IRS looks at several factors, including the taxpayer’s income and assets, to make a decision regarding the taxpayer’s ability to pay. Use the Offer in Compromise Pre-Qualifier tool on IRS.gov to see if you may be eligible for an OIC.