IRS Fresh Start Program | Tax Settlements | Flat Fee Tax Service
Updated: Jun 28, 2019
IRS FRESH START INITIATIVE - SETTLEMENT PROGRAMS
The IRS Fresh Start Initiative is an IRS tax relief program makes it easier for taxpayers to pay back taxes, settle IRS tax debt and avoid federal tax liens. Even small business taxpayers may benefit from Fresh Start Initiative. Here are three important features of the Fresh Start program:
FEDERAL TAX LIENS: The Fresh Start tax relief program increased the amount that taxpayers can owe before the IRS generally will file a Notice of Federal Tax Lien. That amount is now $10,000. However, in some cases, the IRS may still file a lien notice on amounts less than $10,000. When a taxpayer meets certain requirements and pays off their tax debt, the IRS may now withdraw a filed Notice of Federal Tax Lien. Taxpayers must request this in writing using Form 12277, Application for Withdrawal. Some taxpayers may be eligible and qualified to have their federal tax lien notice withdrawn if they are paying their tax debt through a Direct Debit installment agreement. Taxpayers also need to request this in writing by using Form 12277. If a taxpayer defaults on the Direct Debit Installment Agreement, the IRS may file a new Notice of Federal Tax Lien and resume collection and all enforcement actions.
IRS INSTALLMENT AGREEMENT: The Fresh Start program expanded access to "streamlined" installment agreements. Now, individual taxpayers who owe up to $50,000 can pay through monthly direct debit payments for up to 72 months (six years). While the IRS generally will not need a financial statement, they may need some financial information from the taxpayer. The easiest way to apply for a payment plan is to use the Online Payment Agreement tool at IRS.gov. If someone you know does not have Web access they may file Form 9465, Installment Agreement, to apply. Taxpayers in need of installment agreements for tax debts more than $50,000 or longer than six years still need to provide the IRS with a financial statement. In these cases, the IRS may ask for one of two forms: either Collection Information Statement, Form 433-A or Form 433-F.
THE IRS RECEIVES APPROX. 80,000 OFFER IN COMPROMISE SUBMISSIONS EVERY YEAR.
OFFER IN COMPROMISE: An Offer in Compromise is an IRS settlement agreement that allows taxpayers to settle their tax debt for less than the full amount. The Fresh Start Initiative expanded and streamlined the Offer in Compromise program. The IRS now has more flexibility when analyzing a taxpayer’s ability to pay. This makes the offer program available to a larger group of taxpayers.
Generally, the IRS will accept your Offer in Compromise (#offerincompromise) if your settlement agreement represents the most the IRS agency can expect to collect within a reasonable period of time. The IRS will reject your Offer in Compromise submission if it has paper work errors.
If the IRS believes that you, the taxpayer, can pay the tax debt owed in full as a lump sum or through a payment agreement the IRS will reject your settlement offer. The IRS looks at several factors, including the taxpayer’s income and assets, and the statute of limitations to make a decision regarding the taxpayer’s ability to pay.
IRS TAX RELIEF - OFFER IN COMPROMISE
FLAT FEE TAX SERVICE, INC. CLIENTS HAVE A 96% IRS SETTLEMENT SUCCESS RATE.
PER 2016 IRS STATISTICS, APPROX. 42% OF ALL OFFER IN COMPROMISE SUBMISSIONS ARE ACCEPTED.
YOU HAVE APPROX. A 30% CHANCE AT OFFER IN COMPROMISE SUCCESS IF YOU DO IT YOURSELF.