Tax Debt Settlement Through The IRS Fresh Start

Posted by Lamar
Sep 09 2015

irsfsThere are a lot of individuals who cannot settle their high rising tax debts because of unemployment and other unexpected economic conditions. However, the Internal Revenue Service now provides an IRS fresh start in order for the taxpayers to settle their debts at their convenience. They have increased the amount of tax before a person can receive a Notice of Federal Tax Lien. This is very helpful to individuals who have accumulated their tax debts over a period of time. They just have to apply for an IRS fresh start in order to enjoy the benefits of tax lien. Nevertheless, the IRS also provides installment payments on individuals owing taxes of more than $50,000. This installment agreement should be availed through the internet and the tax owed should be paid for 72 months or six years. This is a good opportunity for small business owners who have accumulated their tax debts over a period of time.

The offer in compromise is still under the fresh start program of the Internal Revenue Service and it is only given to those who qualify. It allows individuals to settle their debts within a certain period at a lesser amount of money. However, it is highly advised to know the IRS fresh start program first.

Availing The IRS Fresh Start

The IRS fresh start provides an opportunity for individuals who owe a big amount of money to the government. This kind of program can be availed through the Internal Revenue Service in order to know the possible options that they are qualified in. The IRS fresh start includes Tax Liens, in which the taxpayer will only receive a Notice of Federal Tax Lien when the amount he owes is greater than $10,000. This is beneficial considering that an individual does not have to worry on receiving any charges from the Internal Revenue Service as long as he applied for this kind of program.

Nevertheless, the program also includes an opportunity to pay the tax debt in an installment basis. For those who have a debt of more than $50,000, they can pay it within 72 months or years. Through this, it can give an opportunity for business owners to settle their tax debts in a longer period. It can also be possible to avail an offer in compromise by which the debt is lowered to a certain amount. It should be paid within a certain period of time but these three programs for IRS fresh start should be applied first to know a person’s eligibility.

The IRS Fresh Start For Taxpayers

IRS fresh start can be availed if there are reasonable circumstances that you cannot pay the tax debts. The Internal Revenue Service provides several options to ensure that you can settle the taxes and avoid the charges filed by the public office. They offer installment agreement programs for those who have a tax debt of more than $50,000 and this should be paid within 6 years. Other than this, the IRS also offers a tax lien option in which an individual will not receive a Notice of Federal Tax Lien even if his debt is $10,000. He can also enjoy the benefits of “offer in compromise” as long as he applied for this IRS fresh start through online or through their main office.

The good thing about the flexible payment options of IRS is it allows the taxpayer to settle his debt without facing the consequences. It might not be easy to avail the program but it can be a great way to alleviate the taxes and avoid tax issues with the Internal Revenue Service. Understanding the IRS fresh start is also necessary to have an idea on what the program is all about and how it can benefit an individual.