The ‘Fresh Start Initiative’ or ‘Fresh Start Initiative’ is a relief program rolled out by the IRS in the wake of the Global Economic Recession (2011) by the IRS to help individuals and small businesses against pending tax dues. It expanded the scope and brought changes to various debt relief provisions such as the IRS Offer in Compromise, IRS Tax Installment Agreement and IRS Penalty Abatement so that more taxpayers can now seek extensions and concessions on their unpaid or unfiled taxes. If you have not heard of these plans, don’t worry, we have got you covered. Continue reading as we discuss all the vital aspects of the Fresh Start Initiative.
Options Available
Some of the plans offered under the Fresh Start Initiative are:
- IRS Offer in Compromise (OIC): It is an agreement between the taxpayer and the IRS to give the taxpayer a monetary concession in the full amount of taxes to be paid. To request an offer in compromise to settle a tax debt, you need to present evidence that shows your financial hardship.
- Installment Agreement: This is a long-term payment plan that allows the taxpayer to clear the unpaid dues in monthly installments over an extended timeline instead of a ‘one-time payment’.
- Penalty Abatement: It is a request to the IRS to waive off penalties imposed because of missing deadlines or other reasons.
Though the eligibility criteria is strict for all these options, one of the basic tips to apply for IRS offer in compromise, installment agreement or any other relief program would be to be ready with documents and invoices that explains to the IRS your financial condition.
Qualifying Criteria
Establishing a qualifying criteria for applying for a debt relief option under the initiative helps the IRS in ensuring that only deserving taxpayers get extensions and concessions. Some of the basic criteria include never having fallen behind on taxes, and agreeing to and having the ability to pay tax due within an extended period. The criteria differs with each option and navigating through the terms and conditions can be confusing for many. This is why you should consider getting IRS debt help from an expert debt attorney.
Process to Apply
When requesting the IRS under this initiative, attach as much evidence as possible through documents such as medical statements, death certificates of family members, loan statements, insurance claims, and so on. Apart from supporting your request with documents, attach an application letter with your Form 843. You may also be required to fill out other forms such as Form 433-A (individuals) or 433-B (businesses). Consult a tax expert near you to understand which forms you need to fill up.
Conclusion
Considering the ‘no-nonsense approach’ of the IRS with regards to tax recovery, the Fresh Start Initiative is nothing less than a boon for taxpayers. Eligible taxpayers should take advantage of this initiative. If you are searching for IRS tax solutions and don’t know where to start, consult a tax firm experienced in dealing with the IRS near you that will help you apply for the right relief program with the right documents to support your case. For instance, if you are a resident of Dallas, consult a tax attorney in Dallas, TX. Search ‘Dallas IRS attorney’ or ‘Dallas tax attorney’ online to get a list of top Dallas tax attorneys. Choose a firm with experienced attorneys and which provides dedicated case managers.
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The IRS can bring penalties if you fail to file your returns correctly, fail to file returns on time, or fail to pay taxes.
There are variations of IRS penalties.
What's important to remember is that a penalty or interest charge is often far from your one-time occurrence.
The best way to avoid IRS penalties or interest rates is to submit clean taxation statements each year.
