We are going to discuss a fresh start tax relief program. The Fresh Start Program, or the Fresh Start Initiative, was established in 2011 by the United States Federal Government. It is a Fresh Start Initiative Program that provides tax relief to a select group of taxpayers to whom the IRS owes money. It’s a response by the Federal Government to the predatory ways of the IRS, which uses compound interest, financial penalties, and other methods to impose penalties on taxpayers who owe tax debt.
The IRS Fresh Start tax program will assist taxpayers who owe more than they can be able to. Taxpayers who apply and are eligible could significantly lower their federal tax debts. In certain situations, they might be able to cut down 90 percent or more of what they have to pay.
For certain taxpayers, for taxpayers, the Fresh Start Program is their best chance of reducing the amount of tax debt. The program was created to help people in debt cut the amount they owe so they can get in line with their tax obligations and begin planning for their financial future.
Knowing about the conditions and the application process to determine if you’re eligible to receive Fresh Start tax relief can make it easier to avoid months or even years of paying the IRS and give you the chance to use the money to help support your family, establish an organization, further your education or enhance your community. We will discuss more about fresh start tax relief program.
What is the Fresh Start Initiative, and is it the Same as the IRS Fresh Start Program?
While the various names might create confusion for certain people, there is no doubt that the IRS Fresh Start Initiative is identical to The Fresh Start Program or the Fresh Start Tax Relief Program. The Federal Government created this program, but the IRS must provide it to American taxpayers currently in tax liabilities. This is the reason it is called”the IRS Fresh Start Program.
How Does the Fresh Start Program Work?
Since we are discussing a fresh start tax relief program . Suppose a taxpayer owes the IRS $15,000 for years of tax back and accrued fees. The taxpayer could also be unemployed and unable to pay for utilities and other living costs. They don’t have the funds to pay the IRS $15,000, and, most likely, they won’t be able to pay the IRS the amount due.
The Fresh Start Program mandates that the IRS cannot take more than the amount a taxpayer can pay. This allows the taxpayer to reach their agreement with the IRS and make an amount they can manage. The individual taxpayer’s financial condition will be the IRS’s main criteria for evaluating the taxpayer.
The taxpayer might have to fill out a form via the IRS website, call for or write to the IRS agent, or schedule an appointment to visit the nearest IRS office to verify the eligibility requirements before they can be accepted. When they submit their application, it’s approved and processed by the IRS and they are able to determine if they qualify for the tax relief program known as Fresh Start tax relief. After the approval, the taxpayer will be informed of the new amount of their tax bill.
There are four major taxpayer programs accessible to taxpayers under the Fresh Start Program:
- Installment Agreement
- Offer in Compromise
- Currently Non-Collectible Status
- Penalty Abatement
Installment Agreement
An installment agreement is a type of payment plan provided by the Fresh Start Program. It permits taxpayers to pay an agreed-upon amount each month to the IRS. The payments are directly credited to the taxpayer’s total tax liability and will continue until tax debt has been settled fully.
When you’re on an installment plan, and you are on an installment plan, you won’t be receiving IRS collection letters, nor will you be subject to fines. This is also a great method to demonstrate to the IRS that you’re ready to settle your financial obligations.
The downside to this is that the IRS continues to add interest to the total amount of your debt even if the amount you have to pay each month changes in the Fresh Start Program. Because of the capability of the IRS to add interest to your account balance, the result is that you’ll end up paying more than the amount you initially were owed. We will discuss more about fresh start tax relief program
Although an Installment Agreement is indeed an appropriate method for Fresh Start tax relief, reaching an agreement with the IRS to make a fair monthly installment is a challenge. Your odds of making smaller monthly installments are greater with a tax relief professional to advocate for you.
Offer in Compromise
The IRS Fresh Start Program Offer in Compromise, also known as OIC, is a contract that allows taxpayers to settle their tax debts in a lesser amount than the total amount due. It is the most effective form of Fresh Start tax relief available through the Fresh Start Initiative.
While the Offer of Compromise may be the best way to reduce your tax burden by using this Fresh Start Program, the conditions are extremely rigorous. This option is only available for taxpayers facing financial hardship who do not have the funds to pay the federal tax debt completely. Because of the rigorous conditions for the OIC, the program is not for everyone. Is owed thousands of dollars by the IRS is eligible to participate in the program.
The chances of getting the Offer of Compromise are increased dramatically if you have an accredited tax relief business. Tax professionals have a thorough knowledge of the IRS Fresh Start Program qualifications and aren’t manipulated or coerced by the IRS to accept a less than optimal solution.
Please take a look at the “How to Avoid Tax Relief Scams” section to ensure that you avoid fraud-prone tax resolution firms when looking for professional representation for tax relief. These firms will guarantee clients that they will make you an OIC without first studying your tax situation in detail and preparing the required forms to submit to the IRS. The IRS is the only entity that can accept OICs.
The best tax relief business will be open about their processes, skilled in negotiations with the IRS, and achieve the desired results for their clients. It will build its strategy around your financial goals.
Currently Non-Collectible Status
Since we are discussing a fresh start tax relief program. Contrary to all three Fresh Start tax programs, the Currently Non-Collectible Status program is nothing more than its “status” rather than a type of Fresh Start tax relief. This is because the IRS has the discretion to put the taxpayer in a status that is currently non-collectible if the taxpayer cannot pay their tax.
Although this status doesn’t necessarily eliminate taxes, it does end collection efforts. This includes collecting bank fees, wage garnishments or tax liens, and threats sent by the IRS. The current Non-Collectible Status permits taxpayers to get Fresh Start tax relief peacefully, without the IRS seeking to pursue them.
To be eligible for Currently Not-Collectible Status, you must be able to meet the requirements for the IRS Fresh Start Program qualifications, and we’ll discuss them more in detail below.
We strongly recommend consulting with a tax professional before applying to the IRS. If you decide to apply for the IRS Fresh Start Initiative Program by yourself and fail, the IRS will try to persuade you to sign a more favorable contract with the program.
In addition, when the period for which you are currently non-collectible status ends and you are no longer eligible for collection, the IRS will resume the effort to collect the payments. Those phone calls and letters that threaten penalties will be in effect. Tax relief companies can assist you in staying in Currently Non-Collectible status for the longest time possible and help you create an approach to exit Non-Collectible Status.
Penalty Abatement
Penalty Abatement is the name that the IRS uses to eliminate or reduce penalties. Penalty Abatement is a type of Fresh Start tax relief. However, Penalty Abatement is not a fresh start tax relief. The IRS will only grant Penalty Abatement for a valid reason.
You can apply for Penalty Abatement at any stage of IRS collections. You can do this by visiting the Federal IRS campus, through an electronic collection process, or by contacting the personnel in your local IRS offices. Be aware that the local IRS office can grant a reduction for a Penalty of at least $100. The process of requesting a Penalty Abatement is completely free.
How to Apply for the IRS Fresh Start Program
The IRS will not consider requests to get tax relief through or through any program of the Fresh Start Initiative without sufficient evidence. When submitting a request, include as much evidence as possible. Documentation is the most effective proof against the stringent IRS Fresh Start Program qualifications.
The documents you’ll need will include (but are not restricted to) medical/doctors’ statements, fire department records, insurance claims, statements from student loans, or death certificates for family members. We recommend that you include an explanation letter to accompany your Form 843 explaining your personal situation and why you cannot pay off your tax debt.
To meet the additional requirements required to qualify for tax relief under The Fresh Start Program, you must file all your tax returns that are missing or not filed. Returns. Your estimated tax obligations and your current withholdings must be accurate. Additionally, all tax returns in the last 6 months have to be up-to-date or in order.
The best way to avoid your application from being denied is to get in touch with an expert tax relief business. Even if the IRS Tax relief company rejects, you can assist in appealing.
What Are the IRS Fresh Start Program Qualifications?
Tax relief offered through the Federal Fresh Start Program is only accessible to eligible people. To be eligible for the criteria for IRS Fresh Start Initiative qualifications, You must demonstrate that paying the tax balance could cause you to experience financial hardship. The extent of your financial burden will determine what type of Fresh Start tax program offers you.
Read More: Is It Important to File A US Tax Return When Unemployed?
The IRS has guidelines on what is considered a financial hardship. However, the obligation to prove hardship lies with you, either the taxpayer or the tax relief firm you have hired as your representative. We will discuss more about fresh start tax relief program in this blog post
The IRS Fresh Start Initiative Program 2021
The Fresh Start Program expanded in 2012, just a few months after its inception, and more taxpayers could be eligible for tax relief. One of the most important changes in the Fresh Start Program is now when the IRS decides to accept a taxpayer as the Offer of Compromise; they reduce the calculation of the taxpayer’s future earnings.
From 2012 onwards, there have not been any significant changes made in the tax relief program. The rate at which IRS examiners determine whether taxpayers are eligible for tax relief has changed in recent years.
In 2020 in 2020, the Fresh Start Tax Program saw record numbers of qualified. The huge increase in accepted requests in the form of Fresh Start tax relief and the IRS acceptance of leniency in cases was due in part to the COVID-19 virus, which caused the financial burden on millions of Americans.
But, many taxpayers still face financial challenges in 2021, including parents, students, and entrepreneurs with small businesses. Tax experts say they will see the IRS Fresh Start Program qualifications remain unaffected for a while. However, it is unlikely that the IRS will be able to ease its application requirements for a long time.
The most effective way to determine whether you’re eligible for tax debt relief benefits in 2021 is to verify your eligibility as early as you can for 2020. IRS Fresh Start Initiative Program.
Next Steps
If you’re considering applying to The Fresh Start Program, our experts can help you through the application process. Call us by calling 833-419-RISE (7473).
To learn more about TaxRise services and any updates regarding the IRS Fresh Start Program for 2021, check out our blog, click on the menu on our website to read stories of client success, or join us on Facebook and Twitter!
