IRS Fresh Start
IRS Fresh Start Updates
The IRS has a new Fresh Start policy in place to assist struggling taxpayers. Some individuals or small businesses owe large sums of money. There IRS offers three primary solutions to taxpayers with tax problems.
Notice of Federal Tax Liens
The IRS increased its threshold on the Notice of Federal Tax Liens from $5,000 to $10,000.
IRS Fresh Start Installment Payment Agreements
New IRS Fresh Start provisions allow more taxpayers the ability to enter into installment agreements. This helps taxpayers pay down their back taxes owed to the IRS. Under the new initiative, the maximum dollar criteria increased from $25,000 to $50,000. And, the term increased from 60 months to 72 months. This allows more flexibility to taxpayers to pay off their tax debt.
Offer In Compromise
According to irs.gov, the new initiative for IRS Offer In Compromise process includes:
- Fewer requests for extra financial information
- Taxpayers can submit extra information by phone, rather than mail.
- Increased flexibility when considering ability to pay
The IRS is allowing various increases of flexibility to paying off back taxes. But, there still remains complicated procedures to do so. It is always recommended to seek a CPA or tax professional to assist with this process. Your best bet is to contact someone that has experience dealing with the IRS on a daily basis. Call Jay Allen Finn, CPA, based in Houston, Texas at 877-720-3IRS or 877-720-3477.