How Tax Dues and Debt Can Be Settled With the IRS Fresh Start Program

Dealing with high tax debt is a major issue for an individual or a business as the experience starts to become stressful. There are issues of penalties, interest charges, and other forms of legal action that the IRS can take when it comes to missing a payment.

“The IRS Fresh Start Program” is one such initiative where one gets the chance to meet tax obligations and also to provide flexible options for taxpayers to resolve their existing debt and also to come back with the right terms with the IRS.

In this blog, we will learn in detail about the “IRS Fresh Start Program” and will check the options people have under this scheme to settle the issues of taxes.

The Need for the IRS Fresh Start Program

The need for IRS Fresh Start Program is necessary as it can help taxpayers the option to make tax payments without getting into financial trouble. When a struggling taxpayer fails to make the payment, then in that scenario, one might look for an option that will help them to negotiate with the IRS.

A person can get in touch with an IRS tax lawyer from Los Angeles or from another location, and they can strategize on the ways through which they can follow the compliance norms of the IRS and also maintain the record of tax payments.

Key Relief Options Under the Same Program

IRS brings new payment options to ensure that all citizen can become comfortable in paying their taxes and builds the habit of maintaining the tax payment option.

1.      New Installment Agreements

Under the new fresh start options, one can go for installment agreements, and through that, one can pay off the debt with monthly payments, which breaks the amount into several tranches. It simplifies the payment structure and offers extensive financial aid to the taxpayer.

In case of critical emergency or damage, the IRS itself increases the payment timeline. For example, in the recent Pasadena fire incident, the businesses or houses that came under the whips of fire and got destroyed, the families of such will have an extended timeline.

2.      Providing Offer in Compromise

The offer in compromise is another stance where a person who already has a tax debt but is still unable to pay off the tax amount due to financial hardships. Here, comes the role of the OIC in the fresh start program that allows the taxpayer to pay a minimum amount of the tax debt.

The OIC approaches many citizens to go for tax payment options, which increases the revenue for the government and also allows people to become transparent with their income. There are IRS law firm that helps small businesses or individuals when they deal with tax issues and help them solve the problem of payment by understanding income and expense statements.

Who Can Qualify for the Fresh Start Program?

People who are currently going through financial hardship or owe a lot to the IRS these individuals are the ideal candidates who can look for the fresh start option.

These are some of the common areas that can make a person look for a fresh start program and choose the right options for their tax issues.