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Understanding the Fresh Start Tax Program
The Fresh Start Tax Program is an initiative undertaken by the Internal Revenue Service (IRS). It was first introduced in 2008 during the housing market and financial crisis. The main goal was to provide struggling taxpayers with relief options for outstanding tax debts. Over time, it has expanded to incorporate more people and become more comprehensive. This initiative aims to help taxpayers to pay back taxes and avoid severe IRS enforcement actions like liens, levies, and seizures.
Benefits of the Fresh Start Tax Program
- Eases the financial burden for taxpayers
- Provides flexible payment plans
- Avoidance of IRS enforcement actions
- Assists in regaining compliance with tax laws
Unique to this initiative are its various facets, including tax liens, installment agreements, and offers in compromise. As a nationwide tax relief company, Brightside Tax Relief, has helped many clients take advantage of this program.
Understanding Tax Liens with the Fresh Start Program
One of the considerable fears for taxpayers in debt to the IRS is a tax lien- a claim made by the government on a taxpayer’s property due to unpaid tax debts. The Fresh Start Program increased the tax lien filing threshold from $5,000 to $10,000. This change in policy effectively means fewer tax liens, giving respite to many struggling taxpayers.
Navigating Installment Agreements through the Fresh Start Initiative
The Fresh Start Program further aids taxpayers through revamped installment agreements. Before the initiative, individuals owing more than $25,000 in taxes had to provide detailed financial statements and undergo scrutiny. However, under the Fresh Start Program, the threshold was raised to $50,000, and the maximum term for streamlined installment agreements increased from 60 months to 72 months.
Offers in Compromise (OIC) under the Fresh Start Initiative
An offer in compromise allows taxpayers to settle their tax debt for less than the full amount they owe. The Fresh Start Program made significant changes to the OIC rules, providing a lifeline to financially distressed taxpayers. Several factors are considered for an OIC, including the taxpayer’s ability to pay, income, expenses, and asset equity.
Working with Brightside Tax Relief
As a professional nationwide tax relief company, Brightside Tax Relief highly values the IRS’s Fresh Start Tax program. Our tax professionals have in-depth knowledge and experience in helping taxpayers benefit from this initiative. We can guide individuals and businesses through the process and ensure they utilize the various elements of the Program to their advantage.
Our team assists in the necessary paperwork, represents you before the IRS, and aids in negotiating the best possible payment plan or settlement. We aim to alleviate the stress and burden of tax debts by ensuring our clients can take full advantage of the Fresh Start Tax Program.
Embracing the Fresh Start
If you are facing a significant tax debt, remember that you are not alone. Many people are unaware of the options available to them. The IRS designed the Fresh Start Program with taxpayers like you in mind. It’s meant to ease the burden of tax debts and provide a way forward.
Brightside Tax Relief firmly believes in this initiative as it provides a tangible opportunity for taxpayers to regain their financial footing. Don’t let tax debt hang over your head like a dark cloud. Reach out to us, and together, let’s explore the options available to enable you to have a fresh start.
In Closing
The IRS Fresh Start Tax Program is a powerful tool available for struggling taxpayers. It offers a new lease of financial life by making it easier and less burdensome to pay outstanding tax debts. Remember, the importance of a knowledgeable tax relief company like Brightside Tax Relief cannot be overstated in navigating this process. Our skilled professionals can guide you through the entirety of the IRS Fresh Program, helping you put your tax worries behind.
