Facing an overwhelming amount of tax debt can be quite a daunting experience. Fortunately, the Internal Revenue Service (IRS) offers a program referred to as the Fresh Start Program that can provide taxpayers with the assistance they have to become financially stable once more. Let's have a closer look at what this program entails so you possibly can make an educated decision about whether it's right for you.
What's the IRS Fresh Start Program?
The IRS Fresh Start Program was designed to greatly help taxpayers who're struggling to pay their taxes as a result of financial hardships. It provides several ways to permit taxpayers to reduce their tax debt and monthly payments, including extending payment plans, increasing the total amount of time taxpayers have to pay for back taxes, and offering tax relief options such as for instance Offer in Compromise (OIC) and Penalty Abatement.
Who's Entitled to the Fresh Start Program?
To be able to qualify for the Fresh Start Program, you must meet certain criteria. First and foremost, you need to be up-to-date on all current year filings and have paid all applicable estimated taxes. You should also demonstrate that you cannot pay your full tax debt within the full time allowed by law without creating additional financial hardship for yourself or your family. Additionally, if you should be currently in an existing installment agreement with the IRS, you might be able to modify it under this system to be able to lessen your monthly payments or extend its duration. Finally, if you want to utilize for an Offer in Compromise (OIC), penalties might be abated within your application process if certain conditions are met.
How Does One Apply for the Fresh Start Program?
The first step in applying for the Fresh Start Program is filing all back taxes that are due—this includes any returns from prior years which have not even been filed, along with any unpaid balances from prior years' returns. Once this has been done, individuals should contact their local IRS office or utilize among several online resources offered at irs.gov to be able to determine their eligibility for specific forms of relief offered under this program. If eligible, taxpayers may then submit their applications directly through these online resources or via mail using Form 9465 (Installment Agreement Request). Additionally, those wishing to utilize for an OIC should complete Form 656 and submit it along with supporting documentation demonstrating why they qualify for such relief.
In Short:
The IRS Fresh Start Program was created to help individuals who've fallen on hard times and find themselves struggling to pay their taxes in full within the full time allowed by law without causing further financial hardship upon themselves or their families. If you think this system might be good for your circumstances, begin by filing all required back taxes and then contact either your local IRS office or utilize certainly one of several online resources available at irs.gov in order to determine your eligibility status and begin filing any necessary paperwork accordingly. With some determination and effort on your own part—and perhaps some assistance from this program—you might soon get out of debt and prepared to tackle new challenges!
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