Are you struggling to pay your IRS debt? Are you feeling overwhelmed and hopeless? You are not alone. Millions of Americans are in the same boat. However, there is hope. The IRS has a Fresh Start Program that can help you get your debt forgiven. In this blog post, we will discuss the program in detail and tell you how to qualify for it.
The IRS Fresh Start Program is not a new program. It was created in 2012 to help struggling taxpayers get their tax debt under control. The goal of the program is to provide taxpayers with multiple options for resolving their tax debt, including payment plans and offers in compromise.
While your tax debt may not be fully forgiven, there are multiple Fresh Start perks that you can qualify to enjoy which may considerably ease your tax debt situation. The most relevant perk that may have a huge chunk of your debt forgiven is the offer in compromise option.
Offer In Compromise
The offer in compromise option allows you to settle your tax debt for less than the amount you actually owe. This option is not an automatic choice, so your offer has to be accepted by IRS before it can be implemented. However, this benefit can save you a lot of money and help you get back on track financially.
To qualify for the offer in the compromise program, you must meet strict criteria set by the IRS. You must provide financial information that shows you cannot pay your full tax debt, you must have filed all of your past tax returns, and you must be up to date on your current filings.
Make Sure That You Qualify Before Applying
It is important to note that not everyone who applies for the offer in the compromise program will be accepted. You must meet all of the eligibility requirements and your financial information must support your claim that you cannot pay your full tax debt.
If you are unsure whether or not you qualify, it is best to speak with a tax professional. We at Morris and Associates Tax Specialists can help. We can review your financial information and discuss the best options for resolving your tax debt, including the offer in the compromise program.
How To Apply For The Offer In Compromise Program
To apply for the offer in the compromise program, you must submit an official form and include a $186 fee. You can find this form on the IRS website or at any local tax office. After submitting your application, it will be reviewed by a qualified agent who will make a decision as to whether or not
Forms for submitting an application and step-by-step instructions in Form 656-B, Offer in Compromise Booklet PDF, are available. Your completed offer package will contain Form 433-A (OIC) (individuals) or 433-B (OIC) (businesses), as well as all necessary documentation as indicated.
Individual and business tax debt (Corporation/ LLC/ Partnership) must be reported on separate Forms 656. An application fee of $205 is required (non-refundable).
Other Fresh Start Initiative Benefits
In addition to the offer in compromise, there are other benefits available through the Fresh Start program. These include: A six-month grace period before interest and penalties start accruing on your tax debt.
The ability to set up a payment plan that spreads your payments out over a period of time.
The ability to waive penalties for taxpayers who qualify for the Fresh Start Initiative.
The ability to have an installment agreement reinstated if it was terminated due to non-payment.
Conclusion
The IRS Fresh Start program can be an excellent tool for reducing your tax debt, but it is not automatic. You must qualify for the offer in compromise and agree to all of the terms before you will see any benefits from the program. Morris and Associates Tax Specialists can help you get started with the application process or can review your financial information to determine if you are eligible for Fresh Start benefits.
Get Compliant and Get Tax Relief
At Morris and Associates Tax Specialists, we know how overwhelming it can be to deal with a tax debt problem. We understand that life happens and sometimes people fall behind on their taxes due to unforeseen circumstances. If this is your situation, please do not hesitate to contact us for assistance. We can help you get back on track and resolve your tax debt problem through the IRS Fresh Start program. Morris and Associates are experts when it comes to helping individuals and companies find tax relief in Georgia but can help no matter where you live or whatever tax questions you have. Contact us to help with your taxes and possibly even reduce the amount that you owe.
