What Do We Understand by the IRS Fresh Start Program?
Established in 2011, the Internal Revenue Service (IRS) Fresh Start Program signifies and symbolizes a colossal number of concepts, notions, and options. It falls under the category of debt relief that the IRS opens to all taxpayers.
The plan comes with multiple systems, means, and designs. They make it undemanding and effortlessly for an individual to mitigate the issues, stress, and trouble associated with unpaid tax debts. The program allows them to relieve themselves from the pressure and correlated penalties of tax using legal means or methods.
The IRS Fresh Start Program allows the taxpayers to escape from tax debts in another manner. It can decrease or freeze the amount of debt an individual carries and needs to pay back within a set time limit. Other options offered under the program consist of possibilities and methods to pay back the owed sum of money by reimbursing it in smaller chunks over a considerably extended period or duration.
Overall, the IRS Fresh Start Program refers to a culmination or amalgamation of various modifications and alterations to the original or initial tax code. It aims to benefit taxpayers to a specified extent by offering relief and settlement options at different and distinct levels. The program checks the financial situation and state of each application. After that, it decides the type and degree of aid they are eligible to receive.
Even today, the IRS works with the purpose and intention of aiding taxpayers to acquire or reclaim a steady and stable source of income or finance along with a satisfactory and suitable social standing. It focuses on and strives to facilitate and provide various reasonable means and options of repaying the tax debt instead of carrying out or ordaining penalties. It means that the program stands to offer taxpayers a legal solution and way out so that they do not have to face wage garnishments, jail time, liens, and levies.
The various options of tax debt relief that the IRS Fresh Start Program offers to all taxpayers comprise the following:
• Installation Agreement (IA)
• Currently Non-Collectible (CNC)
• Offer in Compromise (OIC)
• Penalty Abatement
Nevertheless, even while enacting and providing these options, the IRS does not compromise or sacrifice its unique and distinct share of receiving and profit.
Why Did the IRS Fresh Start Program Get Established?
Any taxpayer who fails to pay their tax debt back to the Internal Revenue Service in the stipulated time can find themselves in a dire and complex situation. It stands true regardless of the sum of money they owed or borrowed, both legally and financially.
Nonetheless, a few individuals can seek relief aid from the Taxpayers Advocate Service if they meet all the eligibility criteria. They can also get so from the IRS Appeals Division. The taxpayers can choose this option if they consider and feel that the tax evaluated and assessed exceeds the typical and expected sum.
The taxpayers can resolve the issue according to their satisfaction, needs, and preferences only if they go to a tax court for other complex cases. However, the individuals who legitimately owe tax debts to the IRS will have to face interests in the cases where they fail to pay back within the given time. In extreme scenarios, the taxpayers can get levies and liens enforced on their state tax refunds, wages, and properties.
These issues and troubles can end up piling one over the other, creating a situation where a taxpayer would become unable to sustain or get a job. They would also fail to get affordable tax debt credits.
When such instances arose in actuality, numerous people blamed the IRS and threw accusations and allegations at them. They blamed and criticized the agency for not assisting and enabling the individuals interested to pay off their tax debts. To mitigate the situation and get a feasible solution, the Fresh Start Program got set up. It began partly to aid the people who suffered from a significant hit owing to the recession.
The IRS Fresh Start Program opened to taxpayers having a substantial sum of due tax debts to the opportunity and possibility of combining or merging their tax bills. The numerous schemes under the program work at varying levels. They allow them to settle their tax debts in a convenient and orderly fashion or manner.
In today’s time, the IRS Fresh Start Program works by evaluating an individual’s financial state and information. It does so to decide if they qualify for any of their relief plans or options. If it deems the person entitled, it assesses their situation to determine a scheme that would suit them and their requirements.
This consideration process unravels essential yet subtle issues, making the taxpayer aware of them beforehand. For example, issues and problems like tax liens, wage garnishments, and bankruptcy can lead to needless complications throughout the procedures.
What are the Eligibility Criteria for the IRS Fresh Start Program?
The IRS Fresh Start Program is available and open to all people. Hence, to filter the taxpayers that it can aid, it gives specific eligibility criteria to determine which people qualify for its schemes and relief options. The program provides forms to the people with the parameters listed along with it. All interested taxpayers are required to fill the necessary documentation and send them to the IRS for screening.
The eligibility criteria necessary to apply to the IRS Fresh Start Program entail the following:
• The total income per annum in the case of joint fillers must not surpass $20,000.
• All self-employed individuals must provide proof stating that their net annual income received a 25 percent drop.
• The tax balance of any individual must not become less than $50,000 before year-end.
• The yearly income of single fillers must not exceed $100,000.
The eligibility criteria signify that a taxpayer must choose the tax relief option suitable for their situation, requirements, and condition. To simplify this step, they can seek the guidance and help of a tax professional.