The tax expert shares to know about irs fresh start program options that can be a lifesaver for many taxpayers. One of the most popular is an installment agreement, which allows you to pay off your outstanding debt over a period of time. The IRS also offers a penalty abatement option that can reduce or even eliminate the penalties you owe. The key to successfully navigating any of these programs is working with a qualified and experienced tax relief company.
What is the best fresh start tax program?
One of the main reasons the IRS established the Fresh Start program was to help individuals who are struggling to keep up with their tax obligations. Aside from helping taxpayers with their outstanding debt, the program can also help them avoid a damaging tax lien. A tax lien can negatively affect your credit score and prevent you from selling or borrowing money.
To qualify for the Fresh Start program, you must provide sufficient proof that your outstanding debt is not financially sustainable. You can provide this proof by gathering specific documentation such as insurance claims, death certificates of family members, medical statements, layoff notices, or anything else that you can use to demonstrate your hardship.
The IRS has also increased the threshold to file a streamlined tax lien to $25,000 and has given more flexibility when assessing a taxpayer’s ability to pay when considering an Offer in Compromise (OIC). These changes have made it easier for more taxpayers to qualify for this form of tax relief.