Do You Need a Fresh Start with Tax Debt?

Since 2011, the Fresh Start program has offered various tax relief options including affordable payment plans to help qualifying taxpayers pay off tax debts, avoid tax liens and reduce or eliminate penalties.

Tax Help Through the Fresh Start Program

Through the IRS Fresh Start Program, taxpayers who owe federal taxes have options to pay back their debts and avoid penalties. The program offers three ways to repay debts for back taxes and tax liens.

Payment Installment Agreements

Taxpayers who cannot afford to pay their tax debt all at once can end up with steep fines and penalties on tax debts owed to the IRS. The Fresh Start Program helps taxpayers pay back their debts and avoid severe penalties. For taxpayers who owe $50,000 or less, back taxes can be repaid through monthly direct debit payments spread out over six years with minimal financial documentation. If more than $50,000 is owed, installment payments can still be arranged, but proof of income and debts will likely be required.

Tax Liens

An IRS tax lien is a notice that you owe taxes to the world. If a taxpayer owes $10,000 or more in back taxes, the IRS can put a tax lien on the taxpayer’s property to collect the funds. A tax lien can be attached to all assets, including business assets and new assets that are acquired before the tax lien is released. Tax liens can negatively impact the ability to get housing, loans, and credit. If a tax lien is filed, the Fresh Start Program allows taxpayers to have the notice of lien withdrawn by paying off the lien through direct debit installment payments or paying off the lien in full.

Offer in Compromise

The Offer in Compromise (OIC) is the biggest are the Fresh Start Program has helped taxpayers. For taxpayers who can’t afford installment payments or full payment for taxes owed, qualifying taxpayers can settle tax debts for less than the amount due through an offer in compromise with the Fresh Start Program. To determine a taxpayer’s qualifications, the IRS considers their ability to pay by reviewing their income, assets, and expenses, including other financial debts such as state and local taxes and loans.

Although each tax relief option has certain requirements, all taxpayers who apply for the Fresh Start Program must be current on estimated tax payments for the current year and file tax returns on time.

Fighting the IRS can be difficult, but with the help of Randolph Law Firm – you have a chance to settle your IRS debts! For help with IRS tax issues, do the right thing and contact the Randolph Law Firm in Las Vegas at 702-757-7777 for a free consultation today!

Taylor L. Randolph

Taylor L. Randolph, the founder of Randolph Law Firm, P.C., located in Las Vegas, Nevada. He focuses his practice on bankruptcy, foreclosure prevention, and IRS tax problems. An award-winning attorney who is admitted to practice before the IRS nationwide, Taylor excels in the representation of individuals and businesses who are facing legal challenges.

Years of Experience: Nearly 20 years
Nevada Registration Status: Active

Bar & Court Admissions: Nevada State Bar Association U.S. District Court District of Nevada, 2006 U.S. Supreme Court, 2006 U.S. Tax Court, 2006