It is never a good time to be on the receiving end of IRS collection activity. Although there are multiple options available to taxpayers for IRS tax debt resolution, the process is stressful and often confusing for those who are unfamiliar with the service’s playbook. This uncertainty and unfamiliarity on its own can lead to indecision and procrastination from even the most well-intentioned taxpayers. Don’t let the bureaucracy or stringent reputation of the agents of the IRS trick you, they are still people. They understand that life and circumstances may prevent taxpayers from paying their back taxes on time. As evidence of this reality, the IRS has issued several programs and initiatives to alleviate the burden of some taxpayers. The IRS Fresh Start Program is one such provision. Read on as we present some useful tips to help you make the most of the provision.
Related Blog Post: Guide to Preparing a Request for Appeal
Assess Your Qualification
Before you start investing countless hours preparing to present your application, it’d be just sensible to check your eligibility. While the Fresh Start program is quite inclusive, it has some basic requirements that the applicants must fulfill. Income limits and verification of assets may affect your eligibility for some resolutions. To determine the best approach to your IRS liability, reach out to the Law Offices of Nick Nemeth today.
Choose the Right Provision
The IRS Fresh Start program consists of several provisions to help distressed taxpayers. These include:
- Offer in Compromise (OIC) allows taxpayers to clear their liabilities at an amount less than the actual amount they owe.
- Installment Agreement (IA), as the name suggests, allows taxpayers to pay the amount that they owe in easy installments.
- Currently Non Collectible (CNC) status is a provision that temporarily exempts taxpayers from paying their liabilities, giving them more time.
Related Blog Post: 4 Types of IRS Tax Installment Agreements That Taxpayers Can Use
Maintain Complete Transparency
When applying for the Fresh Start program or any other provision by the IRS, withholding information is the last thing you want to do. A taxpayer needs to have updated and organized financial information and supporting documents. Hiring an IRS tax attorney will help you to better understand your situation and to plan around the IRS’s requirements. The service will require detailed financial information to prove eligibility for any option where a taxpayer cannot fully pay their tax liability. This information should also include all applicable factors, such as bankruptcy, wage garnishments, and tax liens.
The Last Word
Many taxpayers who are unable to pay their dues on time often end up procrastinating any further action on the issue, which only weakens their case to qualify for any of the relief provisions. It is, therefore, important to get into action as soon as possible by bringing in an experienced IRS tax lawyer that can help them with a feasible way out. That’s exactly what you can expect from the team at The Law Offices of Nick Nemeth. For a no-obligation free consultation, simply call (972) 426-2553.
