If you fail to pay your taxes owed to the IRS, consequences could include tax penalties, interest, tax levies, tax liens, asset seizure, wage garnishment, or even get taken to court by the IRS.
In response to IRS predatory collection practices, the government launched the IRS Fresh Start Program for individual taxpayers and small businesses to make it easier for the taxpayers to pay their back taxes.
The Fresh Start Initiative grants more flexible repayment terms for taxpayers, programs that could reduce their tax owed or absolve their back taxes without incurring penalties. Under certain conditions, taxpayers can have their federal backed taxes almost completely forgiven.
There are four main programs through the Fresh Start Program:
- Installment Agreement
- Offer in Compromise
- Currently Non-Collectible Status
- Penalty Abatement
There are many factors that come into whether you meet the IRS Fresh Start Program Qualifications. The financial situation of the taxpayer is the main factor the IRS looks at when determining what you qualify for. The IRS has guidelines on what is considered “financial hardship”. Here at Clear Start Tax, our experts will guide you through the process and help you determine if your eligible for a fresh start!
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