Understanding the IRS Fresh Start Program
They say that there are two certainties in life – death, and taxes.
Expect the latter to become even more certain in the coming years. The federal government recently resolved to spend $80 billion more on Internal Revenue Service (IRS) funding.
It’s no surprise that the federal government has a vested interest in aggressively enforcing tax laws. Taxes are how we make the machine run, and how we enjoy all of the services that come with being a citizen.
Taxes typically only become a problem if you’ve fallen behind. Thankfully, the IRS has a Fresh Start Program that will help people looking to rebuild and get back on the right track.
Keep reading to learn more about how this Fresh Start initiative can help you with your back taxes and other tax issues.
What Is the IRS Fresh Start Program?
The IRS Fresh Start Program began in 2011 to help people that are struggling to pay their taxes. This is an ideal program to look into when you need any tax resolution services.
The program provides a plethora of options for people to reduce what they owe or get more time to pay it back. You’ll be able to use this program to get back on track with your finances so that you can catch up.
What Are the Benefits of the Program?
So, how does the IRS Fresh Start Program help? Understanding the ins and outs of the program will help you find the options that you’re looking for.
Here are some of the main advantages that you’ll appreciate:
It Provides Plenty of Reasonable Options
The main benefit of the Fresh Start Program is that you have more than one way to get back on track with your tax debt. Per the program, you have plenty of ways to resolve what you owe, including:
- The creation of an Installment Agreement
- Entering into an Offer in Compromise (OIC)
- Having your tax debt put into Currently Non-Collectible Status
- Gaining the benefit of Penalty Abatement
With an installment agreement, you have the IRS put you on a payment plan to pay your taxes back each month.
An Offer in Compromise allows you to explore what you’re able to afford and to give the IRS an offer of how much you’re willing to pay back. People love the option of an Offer in Compromise (OIC) because it lets you settle your tax debt at a significantly lower amount.
Currently Non-Collectible Status (CNC) means that the IRS stops coming after you for your past debt. Though they stop trying to collect it, they reserve the right to circle back to collect at a later date if your income increases.
Penalty Abatement lets you receive relief from various penalties that the IRS is levying for your tax debt.
Having access to this many options makes it so that you’re at least somewhat in the driver’s seat, rather than at the whim of whatever the IRS wants to do to handle your debt.
You’ll Regain Your Peace of Mind
Let’s face it, nobody wants to have Uncle Sam on their back. When you embark on the IRS Fresh Start Program, you’ll get your peace of mind back, so that you can begin rebuilding your finances brick by brick.
Many people use this time as an opportunity to also create a budget, take care of their bills, and otherwise improve their money so that it no longer acts as a burden in their lives.
Once you take care of your tax debt, you might be more likely to build your savings and grow your money through investments.
The Program Helps You Avoid Penalties
When you’re dealing with tax problems the penalties can become so burdensome that they keep you up at night. The ability to get rid of these IRS wage garnishment and other penalties offers you breathing room and can save you money long-term.
Going through this program also helps you learn and stay up-to-date with ever-changing tax laws. You’ll learn your obligations as a taxpayer, along with information about programs and initiatives that can offer you resources to make your taxes easier in the future.
How Can You Take Advantage of the Fresh Start Program?
With this in mind, what can you do to take advantage of the Fresh Start Program? The initiative is in place to help as many people as possible.
The IRS recognizes that it’s better to receive some money than no money at all, which is why they are likely to work with you. Start by getting current on your tax returns so that you know where you stand and have accurate records. Work with a firm or get your hands on software that will let you take care of your unfiled tax returns.
Consult with a Certified Public Accountant (CPA) and a tax attorney that can also provide guidance. While the IRS is willing to work with you, they will typically do their best to skew the deal in their favor. Having the help of a professional will allow you to negotiate the best terms for your finances and your future.
Finally, make sure that you’re willing and able to follow through with any plan that you come up with. If you default on an Offer in Compromise, Installment Agreement, or other IRS payment arrangements, you’ll end up right back where you started.
Clean Up Your Taxes Today
The Fresh Start Program offers an incredible opportunity to clean things up if you’ve fallen behind on your taxes. Do your due diligence so that you’re able to figure out your past due taxes in a way that improves your finances and your life as a whole.
Let the Advances Tax Team help you with the IRS Tax Help that you’re looking for. Send us an e-mail or call us at (877)959-0975 for more information on taking care of your tax problems.
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