The Tax Fresh Start Program
The IRS Fresh Start Program, complemented by the expertise of Victory Tax Lawyers, LLP, serves as an essential relief pathway for individuals and businesses burdened by unpaid tax debts. Initiated by the Internal Revenue Service, the program aims to streamline the repayment of back taxes and reduce severe penalties. We will now explore the complexities of the Fresh Start Program, looking at how it, alongside Victory Tax Law’s guidance, can be influential in steering toward financial stability.
What is the IRS Fresh Start Program?
Key Components of the Fresh Start Program
- Tax Lien Thresholds: This aspect of the program increases the amount that taxpayers owe before the IRS generally will file a Notice of Federal Tax Lien. This threshold is now set at $10,000, up from $5,000.
- Installment Agreements: The Fresh Start initiative expands access to streamlined installment agreements. Now, individual taxpayers who owe up to $50,000 can pay through monthly direct debit payments for up to six years.
- Offers in Compromise (OIC): The program has also made changes to the OIC program, which allows taxpayers to settle their tax debts for less than the full amount owed.
Eligibility Criteria for the Fresh Start Tax Program
- Filing of all Required Tax Returns: Taxpayers must have filed all required tax returns.
- Payment of Current Year Taxes: Taxpayers must be current with this year’s taxes.
- Self-employed Taxpayers: If you are self-employed, you must have made quarterly estimated tax payments.
Applying for the IRS Fresh Start Initiative
- Installment Agreements: Taxpayers looking to enter into an installment agreement can initiate the process by applying online through the IRS website. This option allows for the payment of tax debt over time in manageable installments. The online application includes steps to provide personal and financial information, set up a payment plan, and submit the application for approval. It is a system designed to be user-friendly, offering a streamlined way for taxpayers to manage their debts without the immediate financial burden of a lump sum payment.
- Offers in Compromise: The Offers in Compromise (OIC) procedure involves more detailed steps, necessitating that taxpayers provide a comprehensive application to the IRS. Within this application, you need to suggest a specific payment amount, potentially lower than your total tax debt. This proposed amount should be reflective of your financial situation, taking into account factors like your income, expenses, and the value of your assets. The IRS then assesses this proposal, evaluating whether it accurately represents your financial capacity to pay. The objective of this process is to negotiate a settlement where the taxpayer’s debt is resolved for an amount less than what is fully owed, thereby offering a viable solution for individuals who are unable to settle their entire tax debt.
Key Benefits of the Fresh Start Program
- Eased Financial Strain: The initiative presents a less daunting approach to clearing tax debts.
- Minimizing Tax Liens: The Fresh Start program increases the threshold for tax liens, aiding numerous taxpayers in preventing liens on their assets.
- Chance for Settlement: Through the OIC aspect of the program, there’s an opportunity to resolve tax debts for a sum lesser than the total due.
Tips for Navigating the Fresh Start Tax Program
- Stay Informed: Understand the details of the program and stay updated on any changes.
- Seek Professional Advice: Consider consulting with a tax professional to navigate the process effectively.
- Compliance: Ensure you remain compliant with all IRS requirements throughout the process.
A Notable Change
The IRS Fresh Start Program signifies a significant shift in the IRS’s method of dealing with tax debts. This program embodies a more empathetic approach to helping taxpayers address their financial obligations. With the added expertise of Victory Tax Law, taxpayers can effectively navigate this program, setting a solid foundation for a more secure financial future.
Rose’s A.
Parham has helped me on a number of occasions and has been nothing but helpful and professional. He has assisted me with problems I’ve had with the IRS, very scary! He was super informative throughout the process. Would highly recommend him.
Haley Fuller
Everyone I spoke to at this firm was super personable. Anytime I would email my attorney, Parham, I would get a response back almost immediately. When discussing how to go about my case, I didn’t feel like I was being told a bunch of lies to get me to sign on. I appreciate the efficiency and ability to make me feel safe. Thank you for the awesome service. Thanks!!!
Jannie Smail
Taxes are always such a pain. Thanks to Victory Tax Lawyers, it no longer is. They helped me save so much money!
Michael Yadegaran
This firm is top notch. Parham provided a roadmap for my corporate and personal tax questions that I wouldn’t have been able to figure out on my own. He’s helpful, reliable, and supported by a team of brilliant professionals
Kamran Nassiri
NEW LEASE IN LIFE.
Mr Parham Khorsandi at this law firm has saved me %83 on my taxes. With affordable monthly installments to IRS & the state. I know exactly how the individuals that are looking for tax relief feel and i tell you if you want to walk on air again contact Mr.Parham. I thought i would never think this but thank you IRS for helping me out as well.
Samina A.
Im so happy I met the lawyers at victory tax law, after a lot of research hes helped me with my case so much. I had issues with my tax returns and he helped me step by step while explaining everything to me. I would refer anyone I know to Parham and his partner here.
Mike Y.
This firm is top notch. Parham provided a roadmap for my corporate and personal tax questions that I wouldn’t have been able to figure out on my own. He’s helpful, reliable, and supported by a team of brilliant professionals.
Javer X.
Spoke to amir and he was upfront and honest about the process and gave me an option to help me and my situation. Really good guy with a good heart
K M.
They are closed today but I inquired about my situation and to my surprise they replied and gladly answered it. Thanks for caring about your clients, Really appreciate it.