Tax season is a time of year that many people dread. The stress of preparing all your tax documents can be overwhelming. One thing you may not have even considered before filing your taxes are the various penalties, fees, and interest charges that can accumulate if you don’t file on time or at all. These costs add up quickly and could wind up costing more than just the amount owed! Eliminating these pesky charges is crucial for you to get back to enjoying life without worrying about an IRS debt collector knocking on your door!
The unfortunate truth about disregarding your tax responsibilities is that you will most likely have to pay a penalty. Penalties can be charged on top of any unpaid taxes and are meant as a punishment for not following the law. The IRS assesses a penalty for a variety of reasons, including failure to:
Make sure you file your tax return on time.
Pay whatever taxes you owe on time and correctly.
Prepare a correct return.
Returns with accurate information
If you do not pay the penalty in full, they may charge you interest. The IRS assesses penalties on a monthly basis until you pay the full amount owed.
If penalties are imposed as too much of a burden on a taxpayer, depending on circumstances, a penalty abatement may be issued. When it comes down to seeking interest relief, the bad news is The IRS does not waive interest for reasonable cause. Interest is required by law and will be charged until your account is paid in full. The only exception is that if your penalties are reduced through penalty relief, the accompanying interest will also be reduced.
Fresh Start Program
Penalty Abatement also happens to be one of the four major components in the IRS Fresh Start Program. There are many programs that are offered in order to solve your tax-related issues in some sort of way. But there is a new and improved relief program that consolidates many major relief programs into a one-size-fits-all assistance program; The IRS Fresh Start Program.
This program is designed to relieve not only the IRS, but also your back taxes. It does this by making sure you are filing accurately and gives up-front payment options solutions for those who can’t afford their tax debt payments. This relief program utilizes four of the major tax resolution strategies into one consolidated program!
How Simple Is Qualifying?
Considering that the Fresh Start Program is a federal program, you would think meeting the qualifications may be very difficult, but really, it’s a lot simpler and quicker than you think. Take the following steps in order to find out if you are eligible in as little as 3 minutes.
- Fill out some basic information about yourself and your back taxes here.
- Have a representative reach out to you to discuss your eligibility.
- Go through the enrollment process and finally reduce or eliminate your tax liabilities.