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IRS Fresh Start Initiative

IRS Fresh Start Initiative

If you are unexpectedly facing an expensive tax bill, you are not alone. Taxpayers often struggle when their bill is high due to unforeseen circumstances or unknown tax laws. For individuals facing these steep tax bills, harsh responses from the government can make the situation even worse. Luckily, since 2011 the IRS Fresh Start Initiative has been helping those in this very situation. The initiative is focused on finding mutually beneficial solutions between taxpayers and the government.

Making it more difficult to file liens

Historically, the government has automatically filed liens against the personal properties of anyone who owes more than $10,000 in taxes. This means that the government has certain rights to the property until the tax bill is paid. However, having personal property at such risk due to an unpaid tax bill can make a stressful situation seem impossible. To lessen this burden, through the Fresh Start Initiative, the monetary level at which the liens process automatically happens was increased to $50,000. Now, those with overdue taxes can focus more energy on finding a solution to paying their bill, instead of spending energy worrying about their property.

Filing an Offer in Compromise

Usually, the original reason a large unpaid tax bill exist has not changed, and the individual or business has no way to pay the tax bill. Through the Fresh Start Initiative, taxpayers can file an Offer in Compromise, which is often abbreviated to “OIC.” Through an OIC, the taxpayer can formally negotiate with the government to lessen the tax bill. In these cases, it always helps to hire a professional to help negotiate the terms of the new agreement. Attorneys Tax Relief can provide much-needed expertise in this area.

Payment plans

Taxpayers who did not qualify for an OIC used to have few additional options. Through the Fresh Start Initiative, there are more options for taxpayers to have a voice in their payment plan. Historically, individuals who owed $25,000 or more had to submit to lengthy investigations to be approved for a payment plan, often making these payment plans impractical. Through the Fresh Start Initiative, this number has been changed to $50,000 and individuals owing less than this amount can be approved for a payment plan more easily.

Regardless of what the government requires, it is important to work with qualified tax professionals to ensure that you are getting the best possible arrangement. Attorneys Tax Relief is available to assist you to ensure the best possible results to your situation.