The IRS Tax Debt Relief Fresh Start program offers individual taxpayers and small businesses several ways to get relief from Tax Debt Relief. If you’re unable to pay your taxes in full, don’t worry! The Fresh Start program can help you get back on your feet quickly by offering options such as payment plans and reduced penalties and interest. Read on to learn more about the Irs Tax Debit Relif Program, what it offers, and how to take advantage of this helpful IRS program for those in financial distress.
What is the Fresh Start Initiative?
The IRS Fresh Start initiative is an opportunity for individual taxpayers and small businesses with tax debt. If you owe less than $50,000 in taxes, penalties and interest and you have no criminal history, then you may be eligible.
The IRS can waive up to $17,500 of the debt. You will need to pay the remaining balance over a three-year period and make monthly payments at 10% of your discretionary income.
Why Should I Consider an Offer in Compromise?
The Irs Tax Debt Relief offers an Offer in Compromise (OIC) program that allows you to settle your tax debt for less than the full amount.
If you’re struggling financially and can’t afford your federal taxes, this may be a good option for you. An OIC is not right for everyone, but it’s worth considering if it will help you get out of debt faster. To apply, you’ll need to fill out an application form.
You’ll also have to provide information about your income and expenses as well as pay all or part of what you owe before you are eligible.
The IRS Tax Debt Relief has many payment plans available so they work with individual taxpayers on a case-by-case basis depending on their specific needs.
For instance, if you cannot make payments due to financial hardship, then they might lower the monthly payment or extend the time period over which payments are made.
They also offer plans for people who are unable to make monthly payments because they are sick or disabled or those who simply do not have enough money at present time because of unforeseen circumstances like job loss or medical bills.
When Can an Offer in Compromise Be Used?
An offer in compromise (OIC) is an agreement between you and the IRS Tax Debt Relief that settles your tax debt for less than what you owe.
You can use an OIC if you cannot pay your full tax liability within a reasonable period of time, or after a reasonable period of time has passed.
You must be current on all payments to the IRS before submitting an OIC. If you are not currently paying the IRS, they will not review your offer until they receive full payment on all balances owed.
What Happens After I Make a Payment Under the Offer in Compromise Program?
After you make a payment under the Offer in Compromise program, you will need to send another letter requesting that your offer be accepted.
If your offer is accepted, you will be sent a Notice of Acceptance telling you what the terms of the agreement are. You must follow the terms of this notice to qualify for Tax Debt Relief.
For example, if it states that you have five years to repay all or part of your debt, then within five years, you must repay all or part of your debt with interest at the rate listed on the notice.
Getting Ready to File an Offer in Compromise
An Offer in Compromise (OIC) is a legal agreement where you offer to pay the government less money than what you owe, and the IRS Tax Debt Relief agrees not to take any further collection action.
The purpose of this program is to allow taxpayers with a low income or who are experiencing economic hardship, settle their debts for less than what they owe.
You will need to file IRS Form 656 and provide documentation supporting your financial situation. Here’s what you should know before submitting an OIC.
Negotiating an Offers in Compromise with the IRS
If you can’t afford to pay your tax debt in full, the IRS Tax Debt Relief may be willing to negotiate an offer in compromise for you.
An offer in compromise is an agreement between you and the IRS that allows you to pay a negotiated amount of your outstanding taxes.
The IRS typically accepts offers from taxpayers who can demonstrate their inability or unwillingness to pay their total tax liability.
To qualify for this type of relief, applicants must propose a reasonable and fair settlement offer in exchange for lower monthly payments over time.
The IRS Tax Debt Relief takes into consideration many factors before deciding whether to accept an offer. These factors include whether the taxpayer’s circumstances have changed significantly since they filed their original return; whether there are legal obstacles to collecting the taxes owed;
How much money it would cost if they collected the money; how well any future payments will be received by them; and how much they will earn on those payments.
The goal of this program is two-fold: It helps people resolve their debts with less emotional stress than bankruptcy proceedings do while also providing them with some certainty about what those payment terms are going to be.
Change My Mind About Making an Offer in Compromise—What Should I Do?
I owe $19,000 in taxes and I can’t pay my federal taxes. I’m thinking about getting a loan from a company that will help me with my federal tax debt, but it is expensive and I don’t know if it’s worth it.
The IRS Tax Debt Relief offers the Fresh Start program for people who are struggling with their tax debt. If you qualify for this program, you could be eligible for an offer in compromise and get your debt reduced to as little as 10% of what you owe or less.
There may also be relief through other methods such as refinancing your home loan, taking out a VA Home Loan or Structured Settlement Loan, how to get preapproved for VA Home Loan, VA loans after Chapter 7 or Tax Credits for College Students.
Where Can I Get Help Completing Form 656/Form 656EZ (PDF)?
Visit the IRS website for more information on how to get tax debt relief. You can also find helpful resources and links at the IRS website.
To get started with the VA Home Loan program, go to the National Guard VA Home Loan page or call 1-800-669-8989.
You can also preapprove your loan by filling out a VA home loan application form and sending it in today. Remember that VA loans are available only to qualified military veterans, active duty service members and certain spouses.
Qualified applicants must have been honorably discharged from military service under other than dishonorable conditions.
They must not have had any outstanding obligations to the VA when they entered military service and when they apply for a VA mortgage.
A VA loan may be used for purchasing a primary residence or refinancing an existing home mortgage. All VA loans require an appraisal of the property being purchased or refinanced in order to ensure fair market value is paid for property.
Form 14255EZ – A User Guide for Completing Form 656EZ (PDF) – Updated October 2016
The IRS Tax Debt Relief offers a way for you to file and pay your taxes without the cost of attorney’s fees or the risk of complicated tax law.
You may be eligible if you owe less than $50,000 in combined state and federal tax debt. The IRS Fresh Start program also makes it easier for taxpayers with moderate-sized tax debts.
You may qualify if your total state and federal taxes owed are between $10,000 and $50,000.
- Complete Form 656EZ (PDF) – Updated October 2016;
- Send completed form to the appropriate department below depending on your situation: – Individual taxpayer (under $50,000 in combined state and federal taxes owed): Internal Revenue Service – Cincinnati Centralized Correspondence Examination Division Attention Fresh Start Processing Group P.O. Box 29640Cincinnati, OH 45250-0640
Downloadable Forms and Publications from irs.gov
The IRS offers tax relief programs for people and businesses in financial difficulties, including an offer of a reduced balance due to the taxpayer’s inability to pay.
The IRS also offers various forms and publications for taxpayers who need assistance with all aspects of filing their federal taxes, including for example how to get preapproved for a VA home loan, or a va loan multi family.
The IRS Tax Debt Relief has published a variety of documents that you can download from its website, irs.gov, that can help you navigate your way through your federal tax issues.
In addition to these resources, there are free education programs available as well as information about how to lower your cost on refinance your home loan through VA loans as well as va loans multi family.
So what are you waiting for? Download some helpful documents today!
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