If you’re in debt, especially in debt to the IRS, it’s not a great feeling. With so many different kinds of costs piling up these days, it’s easy to prioritize living expenses over repaying the IRS. Let’s face it, digging yourself out of debt can be very challenging and it requires discipline and planning. Something that doesn’t always come easily to most people. Fortunately, there are programs and specialists available to help people remedy these situations.
One of those such things is called the Fresh Start Program. We’ll provide an overview of what the program is like and how it can help those of us who are in debt to the IRS for back taxes owed.
First Priority: Understanding Your Situation
If you find yourself owing money to the IRS for taxes owed, it’s critical that you determine the accuracy of this information. Mistakes happen, even by the IRS. That’s why Taxpayer Advocate Services exist. If you feel the amount you owe is incorrect, you should get in touch with your local TAS. You can also reach out to the IRS directly in order to have someone review your case and determine exact amounts owed. A third option involves you taking your case to a tax court.
If you do owe large amounts it’s important for you to understand what exactly the IRS can do to you. The IRS has the ability to garnish your wages – which means they can legally seize parts of your income as payment. They can also seize assets and put liens on property. Your goal should be to avoid these potential outcomes if at all possible.
What Is The IRS Fresh Start Program?
The IRS Fresh Start Program is a program that is designed to allow taxpayers to pay off substantial tax debts affordably over the course of six years. Each month, taxpayers make payments that are based on their current income and the value of their liquid assets. Even small business taxpayers may benefit from Fresh Start. The program began in 2011 and was expanded to make it more accessible to more people in need.
Who Can Qualify?
If you owe the IRS $50,000 or less in tax debt you may qualify to start this program immediately. The program determines monthly payments based on the taxpayer’s current income and the value of their liquid assets.
Once monthly payments are set up, simply complete your payment schedule to avoid tax liens, seizure of assets, and wage garnishments.
Editor’s Note: As always, thanks for visiting our site and reading our articles. If you’re in a situation where you owe fees to the IRS, we do recommend you speak to a tax and financial specialist in your area who can help you organize your finances for long-term success.