An Explanative Guide on IRS Fresh Start Program
Understanding that taxes are the main sources of revenue for most of the government in the world is very important as an individual or a business. This is because you must pay your taxes on time and the right amount otherwise there are penalties that you have to deal with. However, if you already, all the IRS money it is very important that you can avoid damaging your name by finding solutions to that. The worst thing is that you will never have peace of mind when you know that you have the money because you don’t know what they will do next and that is what is very critical that you can find a solution. One of the recommendations that you need to think about is the IRS fresh start program. Discussed more below are some guidelines on IRS fresh start program.
It is a program that was introduced in 2008 but was later explained in 2012 budget is a great program that is meant to ease the financial burden of many taxpayers especially because of the economic crash. However, you need to understand that the program is not here to eliminate the debt to the IRS altogether, but instead, it provides you with better options of settling your debt in the six-year period. Basically, it means that every month has to make a payment based on the value of your liquid assets, but also on your income. Therefore, it is a program that helps you avoid very many consequences which are always severe. For example, if you utilize this program, you will be able to avoid the high amounts of interest, expensive penalties, and tax liens. It is wise of you to understand that you can also avoid the seizing of your assets to pay back the debt and also avoid wage garnishment.
You are also given different payment options that you need to consider. One of them is the installment agreement which I different types like guaranteed, streamlined, in business and also routine which you can learn more about. For those that have a big amount of money to pay you can read more on offer in compromise. It is also important that you can read more about qualifications for you to start this program as you also learn more about the application program. If you don’t have an accountant to help you when it comes to following the appropriate procedure and understanding more about it, then you can always make a call to the best tax professionals as you also read here to learn more about the application process.