What is the IRS Fresh Start Program?
The IRS (Internal Revenue Service) Fresh Start Program, launched in 2011, is a blanket term. It represents and signifies a colossal number of options, concepts, and notions. All of them get offered by the agency of the Internal Revenue Service (IRS). They aid in relief from tax relief.
The plan delivers designs, schemes, and systems to allow troubled and stressed taxpayers to pay back their due tax debts effortlessly using legal means and methods. It aids them to avoid the stress and pressure of the dues and protect themselves from the penalties associated with them in a legal and authorized manner.
The IRS Fresh Start Program aims to help taxpayers who are in dire situations. It provides means and ways of decreasing or freezing their debt amount. This option applies and works when an individual gets bound under the mandate that they have to pay back a fixed sum of money in a specified or stipulated time. Other proposals and arrangements under the program permit the taxpayers to settle their tax debts over a lengthier period. It works by extending the duration they have to pay off the owed sum. This choice of tax relief requires them to return the amount of borrowed money over a lengthy yet fixed period and in considerably smaller chunks.
To summarize the function and operations, the IRS Fresh Start program comes with and offers a compilation and culmination of various alterations, changes, and modifications to the fundamental and existing tax code. It aims to help the tensed and troubled taxpayers to a considerable yet particular extent within the means and domains of legal bounds. It does so by offering them several repayment and tax debt relief options in distinct and adapting levels. Each applicant and taxpayer associated with the program receive the required benefits and aids from the IRS based on the needs brought upon them by their unique and current financial condition, state, and situation.
The IRS Fresh Start Program allows numerous taxpayers to salvage or reclaim and acquire a stable and secure source of finance and income. In addition to that, it seeks to aid the people opting for the plan attain a satisfactory and respectable standing and post in the social circle.
The program pays attention to and revolves around offering and facilitating rational and sensible methods and options of reimbursement to the tax debts. It aims to avoid and prevent instances or cases of ordaining penalties for failing to repay the borrowed money. This unique approach and ambition of the IRS Fresh Start Program imply that it provides several legal solutions and means of doing so. Overall, it wishes to deter wage garnishments, liens, jail time, and levies related to an incident and occasion of non-payment.
What are the Necessary Eligibility Criteria to Apply for the IRS Fresh Start Program?
The IRS Fresh Start Program is one such plan that remains open, accessible, and available to all taxpayers. Anyone who wishes to get one of its tax debt relief options can sign up for any of its schemes at any time. However, it stands true solely when they qualify for the program. For this, they have to meet a few fundamental criteria and requirements set by the IRS Fresh Start Program itself.
The criteria help notify the potential applicants and make them aware of the requirements beforehand. It makes it so that they do not find themselves in a difficult situation later on. It also allows the agency to filter and segregate the list of individuals who qualify for the program. It permits both parties to discover and decide on the best possible outcomes and results.
The eligibility criteria set by the IRS Fresh Start Program include the following parameters:
- Self-employed taxpayers must present proof as evidence that their net annual income experienced and suffered from a total drop of 25 per cent.
- Single filers must possess and acquire an income that does not cross the threshold of $100,000 per year.
- Before the end of a year, an individual’s tax balance must not exceed a total of $50,000.
- Joint filers must possess and acquire a total earning amount that does not cross the threshold of $200,000 per year.
The eligibility criteria aim to deliver a single underlying statement. They wish to aid all taxpayers to discover and opt for a scheme under the IRS Fresh Start Program that meets their requirements and needs to the best possible degree or level.
What are the Steps to Apply for the IRS Fresh Start Program in 2022?
To apply for the IRS Fresh Start Program in 2022, any taxpayer must first acquaint themselves with all the eligibility criteria provided and ensure they qualify for the program. To do so, they have to:
- File and complete all transactions related to the due tax returns
- Make the required payments as decided and agreed upon between the IRS and them
- Provide detailed and descriptive information of their financial state and condition if requested by the IRS
The IRS uses the submitted documents and comes up with a tax debt relief option that would be perfect for the taxpayer. When both parties agree and make the final decision, the IRS takes the procedure forward and performs all the required actions. It enables the taxpayer to pay off the outstanding debt at their convenience using legal means while avoiding all kinds and sorts of penalties.
When a taxpayer meets the eligibility criteria for the IRS Fresh Start Program, they can receive help with one of the three crucial tax issues. They comprise:
- Removing tax liens: It helps eliminate tax liens while dealing with tax debts.
- Assessing offers in compromise: This option allows the taxpayers to negotiate and decide on suitable schemes to settle the debts by paying back less than the owed sum.
- Registering for installation payments: It allows the taxpayers to pay back the owed money in smaller amounts. They can do so over an extended period with no penalization.
Founder Dinis Guarda
IntelligentHQ Your New Business Network.
IntelligentHQ is a Business network and an expert source for finance, capital markets and intelligence for thousands of global business professionals, startups, and companies.
We exist at the point of intersection between technology, social media, finance and innovation.
IntelligentHQ leverages innovation and scale of social digital technology, analytics, news and distribution to create an unparalleled, full digital medium and social business network spectrum.
IntelligentHQ is working hard, to become a trusted, and indispensable source of business news and analytics, within financial services and its associated supply chains and ecosystems.