What You Need To Know About The IRS Fresh Start Program

What You Need To Know About The IRS Fresh Start Program

If you owe back taxes to the IRS, you might be feeling a little anxious about when they will come to collect. However, with the fresh start program, you might be in luck. Here is what you need to know about the program and whether or not you qualify.

What Is The Fresh Start Program From The IRS?

It refers to a debt relief program offered by the IRS. It is supposed to make it easier for people or businesses who have a huge tax debt and penalties to get the help they need with their tax debt legally. Some of the options under this program may freeze the debt or reduce it. Others allow you to pay the debt in smaller chunks over a period of time. The program offers varying levels of relief depending on the financial situation of every applicant.

Who Qualifies For The Fresh Start Program?

The program is available to everyone. With there being so much variety, you should be able to find at least one suitable option for you depending on your financial situation. However, you need to work with a tax professional for the best results. Before you apply for the fresh start program, make sure you have filed all your current returns. You must also have the correct number of withholdings in your current year. Other factors to consider include:

• If you are self-employed, you must prove there is a drop of 25% in your current income.

• If you file your returns jointly, you must not earn more than $200,00 every year.

• If you file your returns as a single entity, you can’t earn more than $100,000 every year.

• Also, your tax balance should always be below $50,000 before the year ends.

Remember, just because you qualify, it doesn’t mean that the program will be applied to you. Take your time to find the option available to you. Make sure you provide the appropriate forms to the IRS to get started. Fill every form honestly so you can find where you qualify. It’s always a good idea to work with a tax accountant.

Hiring a tax professional might not be as easy as it seems. Therefore, take the time to find someone who is conversant about individual or business tax matters to avoid any hassles. With the program, you should be able to get tax relief on your tax debt to avoid falling further into debt.