It’s no secret that taxes are one of the greatest stresses in American life! Overall, worries about money cause grief for many Americans.
But if you’ve had challenges in dealing with tax debt, you might want to consider the IRS Fresh Start Initiative. This is a program that helps Americans who have been in tax debt for the first time.
It helps you deal with the burden of taxes and is a great way to reduce the stress that comes with tax obligations.
Here’s what you need to know:
How It Works
The IRS Fresh Start Program can help taxpayers pay off their first-time tax debts in a more manageable timeframe.
It allows the following:
- It makes it easier to receive a Federal Tax Liens (FTL) release after you pay off tax debts
- It’ll be easier to qualify for Installment Agreements for your small business in the future
- Expands the qualifications of the Offer-in-Compromise (OIC) for future tax obligations
These are some of the few benefits of the program. It gives taxpayers a second chance at paying off their debts faster. It also helps them with handling any future tax obligations they might have.
What Qualifies You for an IRS Fresh Start Initiative
So how do you qualify for this initiative? You have to make sure you meet the following criteria:
- You owe less than $50K in taxes
- You can pay off your debt within 60 months
- This is your first time failing to meet your tax obligations
- You agree to make payments in installments
- Your tax filings are up-to-date
These are some of the current qualifications for the IRS fresh start initiative and are subject to change. If you qualify, you might wish to contact the IRS to see if they can grant you this opportunity.
It’s a much easier way to pay off your tax debts. It’ll definitely bring you peace of mind when paying what you owe.
Best Practices for Meeting Tax Obligations
It’s imperative that you consult a tax accountant or attorney to advise you on how to handle paying off your tax obligations.
However, as a general rule you want to follow these best practices:
- Make sure you budget to put aside money to pay your tax debts
- Try to cut down personal and business expenses
- Make sure you comply with regulations and laws for your business to avoid penalty fees and fines
- Find the best jurisdiction to operate a business from a tax perspective
Your tax obligations can be one of the greatest stresses of your life. As such, you want to do your research in advance to avoid any issues. It’s always best to study the tax codes and consult a professional to assist you.
Learn About Taxes
Now that you know about the IRS fresh start initiative, make sure you share this guide with others.
Taxes can be a burden on most of us, but if you take the time to learn the tax code you can save yourself the trouble.
It’s important to stay tax compliant so that if you do fall into debt, you can qualify for such initiatives. Make sure you follow the best practices to pay off your tax debts as fast as possible.
You can also find more great financial content on our website!