If you received a notice or letter saying we denied your request for penalty relief, see Penalty Appeal Eligibility for next steps.
Families that are eligible, including Puerto Rican families, can claim the credit up to April 15, 2025 by filing a federal Tax Return. This is even if they do not normally file or have low income.
Yes! The IRS and taxpayers both benefit from the Fresh Start initiative. The IRS wins, as they'll be paid some form of payment and not just being ghosted. The IRS will win because the taxpayer won't be subject to levies, garnishments, wages, criminal penalties or fines.
Many businesses that have been severely impacted by coronavirus (COVID-19) qualify for employer tax credits – the Credit for Sick and Family Leave, the Employee Retention Credit, and Paid Leave Credit for Vaccines.
We'll first identify any potential penalties or interest charges you should be aware of between now and the time you are approved for a relief plan. Next, we will discuss your circumstances with you in order to determine which Fresh Start tax program option is best for you. To increase your chances of getting accepted, we'll walk you through each step of the application process. Because we understand the language of the IRS, we can help our clients with all aspects of the application process. Our team will help you with your tax journey and ensure you are in compliance after you have been accepted to the Fresh Start program. This could include helping you file your taxes on-time to avoid violating your agreement. Call us today to learn more about how you can get tax relief under the IRS Fresh Start program.
The IRS Fresh Start Initiative Program aids taxpayers who owe IRS taxes in paying back taxes or avoiding tax liens by offering a range of payment plans. The IRS has many tax debt reduction options. The Fresh Start Program can be described as a broad umbrella term. The program implemented changes that mainly revolved around installment agreements, tax liens, compromise offers, and other collectible charges.
The answer is yes. Both the IRS as well as taxpayers will benefit from the Fresh Start initiative. The IRS wins as they will receive some form payment, rather than being ghosted by taxpayers. The IRS wins because the taxpayer will be in good standing, meaning they won't be hit with levies or liens, wage garnishments, fines, criminal penalties, or other consequences.
Fresh Start Program allows taxpayers who owe back taxes to enter into an agreement that spreads out the payment over several months but not more than 5-6 years. You will need to make direct debit payments.
You may also make other requests, such as for this new relief. Contact the number on the notice or respond in writing. To request relief, taxpayers must respond to any balance due notice.
Does the IRS know when you open a bank accountTo determine if your offer in compromis is eligible, you can use the IRS's Prequalifier. However, even if your offer is eligible, it doesn't guarantee approval.
Penalty relief is not available in some situations, such as where a fraudulent return was filed, where the penalties are part of an accepted offer in compromise or a closing agreement, or where the penalties were finally determined by a court. For details, see Notice 2022-36, available on IRS.gov.
We understand what you are thinking. This Fresh Start Program sounds too good to be true. The good news? The IRS program is completely legitimate.
An offer in compromise is generally approved if the amount offered represents the maximum we can collect within a reasonable time. Before you submit an offer of compromise, make sure to explore all payment options. The Offer in Compromise program may not be for everyone. You should verify the qualifications of any tax professional you hire to assist you in filing an offer.
Find out the most current tax relief provisions for taxpayers that have been affected by disasters.
Eligible families, including families in Puerto Rico, who don't owe taxes to the IRS can claim the credit through April 15, 2025, by filing a federal tax return—even if they don't normally file and have little or no income.
OIC (or offer in compromise) in the United States is an Internal Revenue Service Program that allows tax-debtors qualified individuals to negotiate lower amounts than the total amount owed in order to clear their debt. The Form 656, Offer In Compromise, package includes a checklist which identifies whether the taxpayer can participate in this offer in compromise program. OIC programs encourage voluntary compliance for future filing requirements.
To claim deductions, it’s important to keep records of your donations to charities. You may not have to send these documents with your tax returns, but they are good to keep with your other tax records. Common documents include:
Relief from Penalties — The IRS is highlighting reasonable cause assistance available for taxpayers with failure to file, pay and deposit penalties. First-time penalty abatement relief is also available for the first time a taxpayer is subject to one or more of these tax penalties.
Without sufficient evidence, the IRS will not accept any request for tax relief under the Fresh Start Initiative. Send as many supporting documents as possible when submitting a request. The best evidence to support the strict IRS Fresh Start Program requirements is documentation. Documentation you will need to include, but is not limited, doctor/medical reports, fire department reports and insurance claims. You also need student loan statements, student loan statements and death certificates from family members. A letter explaining your personal circumstances and the reasons you cannot pay your tax debt should be included with your Form 843. To be eligible for tax relief under the Fresh Start Program, all missing or unfiled tax returns must be filed. Your estimated tax payments must also be current and your withholdings must be accurate. All filings from the past six months must also be correct or current. Contacting a professional tax relief firm is the best way to avoid your request being denied. A tax relief company can assist you in filing a letter of appeal even if your request is denied by the IRS.
Academic Fresh Start is a program that allows residents of Texas to enroll in college courses without having to have poor academic performance.
Unlike the other three Fresh Start tax programs, Currently Non-Collectible Status is just that: a “status” rather than a form of Fresh Start tax relief. The IRS reserves the right to place a taxpayer in Currently Non-Collectible Status if the taxpayer cannot pay their taxes.While this status does not necessarily remove tax debt, it does stop any collection activities. Such activity includes bank levies, wage garnishments, tax liens, and threatening letters from the IRS. Currently Non-Collectible Status allows a taxpayer to find Fresh Start tax relief in peace, without the IRS coming after them.To qualify for Currently Non-Collectible Status, you will need to meet the IRS Fresh Start Program qualifications, which we discuss in more detail below. We highly recommend that you consult with a tax professional before requesting this status from the IRS. Should you try to apply for the IRS Fresh Start Initiative Program on your own, the IRS will attempt to get you to agree to terms that are more favorable for them.Additionally, once the time period of your Currently Non-Collectible Status ends, the IRS will begin again in their efforts to collect on payments, and those phone calls and letters threatening penalties will continue. A tax relief company can help you stay in Currently Non-Collectible Status for as long as possible, and can help you develop a strategy for when you leave Non-Collectible Status.