The IRS offered several debt relief programs, but all of them exist under the umbrella term IRS Fresh Start Program. This program uses a method of organizing your debts into affordable monthly payments over a five or six-year period.
The program also offers a stop on collection notifications and penalty abatement. As a result, in only a few years, you can be free from IRS tax debt. This will reduce your life stress and improve your finances. It will also put you back in good standing with the tax authorities.
Who qualifies for the program?
The IRS Fresh Start Program is an excellent option for those carrying two debt and legal penalties. It allows you to pay back your debt in small installments over a set period that you agree with the IRS. Unfortunately, not everyone will qualify for debt relief.
To qualify for the IRS Fresh Start Program, you must owe less than $50,000 to the US government. You must also agree to pay back the total amount of your debt in less than 60 months by direct debit. To qualify, you must also continue to pay tax without defaulting.
How does it work?
It can be hard to pay back the burden of tax debt accumulated from self-employment or Defaulting on payments. The IRS Fresh Start Program is designed to offer a leg up to those struggling. The way it works is simple; read on to find out more.
The IRS Fresh Start Program is open to people who owe the IRS less than $50,000. You must also agree to the regular payments of the program carried out over 6 years. If you meet the criteria, you can apply to the IRS for tax debt relief, and they can put you on the program.
Can I have my debt forgiven?
In some cases, IRS tax debt can be forgiven. However, you will have to qualify and prove that paying back the debt will place a significant financial burden on you and your family. Applications for tax debt relief are made to the IRS using a 656 form.
If you feel the burden of tax debt and think you can comfortably pay back the total amount over the given period, you might negotiate with the IRS on a settlement sum. On average, the IRS is willing to settle for around $6,000.
Advantages of IRS Fresh Start Program
If you find yourself with the burden of tax debt in your life, it is stressful and painstaking. But, unfortunately, it might also put you on the wrong side of the law. To prevent these outcomes, the IRS introduced the IRS Fresh Start Program in 2011 to help people get back into good standing with the authorities.
The IRS Fresh Start Program gives you a controlled and actionable strategy for escaping the burden of tax debt. The program helps to bring your tax debt under control, relieves the stress of having it and allows you to pay it off sooner. You will also benefit from penalty abatement.