We understand what you are thinking. This Fresh Start Program sounds too good to be true. The good news? The IRS program is completely legitimate.
If the amount that you offer is more than we can reasonably collect within a reasonable amount of time, we generally approve compromise offers. Before you submit a compromise offer, explore all available payment options. The Offer In Compromise program might not suit everyone. Hire a tax professional to help file your offer. Make sure they are qualified.
The total combined net assets of the applicant and spouse may not exceed $75,000 as of December 31 of the preceding year for which relief is sought.
What happens if you owe the IRS more than $50000“Helping my clients get their life back on track resolving tax debts makes my job incredibly rewarding. That’s probably why I enjoy doing taxes so much. I help people save money and solve their tax problems everyday at Ideal Tax.”
It's not nearly as bad as it used to be. In 2012, the IRS's Fresh Start Initiative was extended. OIC acceptance rates have risen significantly from their range of 25-30% in 2012.
The IRS is also taking an additional step to help those who paid these penalties already. Nearly 1.6 million taxpayers will automatically receive more than $1.2 billion in refunds or credits. Many of these payments will be completed by the end of September.
The IRS will determine the amount it will accept to settle your debt if you are eligible for an OIC. This amount is also known as the reasonable collection potential (RCP). This is the maximum amount the IRS can reasonably collect before the collection statute expires.
Publication 3833, Disaster Relief: Providing Assistance Through Charitable OrganizationsPDFThis publication details how members of public can help victims of disasters or other extreme hardship situations.
The Offer in Compromise (or OIC) program, in the United States, is an Internal Revenue Service (IRS) program under 26 U.S.C. § 7122 which allows qualified individuals with an unpaid tax debt to negotiate a settled amount that is less than the total owed to clear the debt. A taxpayer uses the checklist in the Form 656, Offer in Compromise, package to determine if the taxpayer is eligible for the offer in compromise program. The objective of the OIC program is to accept a compromise when acceptance is in the best interests of both the taxpayer and the government and promotes voluntary compliance with all future payment and filing requirements.
This step provides relief for both individuals and businesses affected by the pandemic. It also allows the IRS to concentrate its resources on backlogged tax returns, taxpayer correspondence and to return to normal operations for 2023 filing season.
Most people eligible already have their Economic Impact Payments. To find out if you are eligible for the credit for 2020 or 2021 tax year, anyone who is missing stimulus payments should visit the Recovery Rebate Credit Page.
Check here to see whether you meet their guidelines: www.irs.gov/advocate/low-income-taxpayer-clinics/low-income-taxpayer-clinic-income-eligibility-guidelines
IR-2021230, IRS: All Mississippi is now eligible for Hurricane Ida Relief; deadlines Sept. 15, Oct. 15, and other dates extended up to Jan. 3.
A Fresh Start Program could be available for businesses with outstanding taxes. The following requirements are required in order to qualify for the Fresh Start Program.
First, we'll determine any possible penalties or interest charges that may apply between now & when you receive a relief option. Next, we'll review your situation and help you choose the right option under Fresh Start tax. We'll guide you through each step to help increase your chances for being accepted. We speak the language and are able to assist our clients with every step of the application. Our team can help you navigate your tax journey, and make sure you remain in compliance once you have been accepted into Fresh Start. This may include helping to file your taxes on the correct time so that you don't violate your agreement. Contact us today to find out how you might be eligible for significant tax relief as part of the IRS Fresh Start Program.
Penalty Abatement refers to the IRS's term for reducing or wiping out a penalty. Penalty Abatement is a type of tax relief called Fresh Start. The IRS will not apply Penalty Abatement unless there is a good reason. Penalty Abatement can be requested at any level of IRS collections. This includes visiting a federal IRS campus or through an automated collection system. You also have the option to speak with staff at local IRS offices. A local IRS office cannot grant Penalty Abatements of more than $100. The Penalty Abatement request is free.
If you are considering applying for the Fresh Start Program, our experts can guide you through the process. Give us a call at 833-419-RISE (7473).To find more information on TaxRise services, and to learn about updates on the IRS Fresh Start Program for 2021, visit our blog, click the site menu to read client success stories, or follow us on Facebook and Twitter!
If your business owes taxes, you could also be eligible for the Fresh Start Program. In this scenario, you will need to meet the following requirements:
DisasterAssistance.govThis is a one stop Web portal that consolidates information from 17 US Government Agencies where taxpayers can apply for Small Business Administration loans through online applications, receive referral information on forms of assistance that do not have online applications, or check the progress and status of their applications online.
The IRS provides additional tools for taxpayers who owe tax, including payment plans and installment agreements.
Of course, we’ve only touched on the basics of the program. If you have any further questions, would like a firm answer regarding whether you’re eligible for the program or not, or want to apply for the Fresh Start Initiative, don’t hesitate to contact us! Whatever your situation may be, our qualified, experienced, and friendly tax professionals will be able to guide you in the right direction.