IRS Fresh Start Tax Program or IRS Fresh Start Tax Plan are two terms which have been widely advertised via TV ads and even the popular radio talk show over recent years. The goal of this program is to get taxpayers back into tax debt as quickly as possible by settling their past due taxes without any court action or payment. However, the IRS claims that this program is not in place to cheat taxpayers out of their hard earned money but rather it is there to assist those who have become upside down in their tax debts by using available tax settlement options that can be tailored to each individual situation. Some people have used the IRS plan and found themselves much deeper in debt than when they started. The IRS claims that there has never been a better time for taxpayers to settle their debts and return to the financial stability they once enjoyed. In fact, they say that even though they have received a great number of tax payments over the years, the amount of late payments has significantly increased. The problem with many of the returning taxpayers is that they simply do not understand that they have a legitimate financial hardship which is causing them to be unable to pay their past due taxes. They may have suffered an injury, lost their job or became disabled or ill. Many of these individuals are not alone in their hardships; many struggle in this same category. When a person finds that they are unable to pay their taxes for a prolonged period of time, they should not ignore the possibility of contacting a tax relief company. A trained professional will be able to assess the financial situation of the taxpayer and determine if the fresh start tax program is the right option.

Benefits of fresh start tax program

One of the best parts of the fresh start tax program is that most qualified taxpayers will automatically become enrolled in the program without requiring a further assessment. As long as the taxpayer meets the specific income guidelines required by the IRS, they will most likely qualify for the tax debt relief. It is very important for individuals to take note of the qualifications required because there are some taxpayers who will not qualify because of erroneous information provided on their application. The IRS is determined to make certain that each citizen has the opportunity to repay tax debts and it would be unacceptable to have American citizens fall through the cracks while trying to repay their debts. With the fresh start tax program, taxpayers no longer need to worry about paying late fees, penalties and interest as they will no longer owe these extra costs. If the debt was due to a federal tax conviction, the penalties and interest will still need to be paid. In many instances, the penalty can be in the form of a large fine or even jail time. There is no reason to fall behind on your taxes when you know that there are options available to avoid being charged with criminal offenses.

Another benefit of the fresh start tax program is that taxpayers are not expected to pay back the full amount of their tax debt immediately. The IRS gives taxpayers until the year’s end to pay back one half of the outstanding balance. When this happens, the taxpayer is given a second chance to pay back the balance or face further action. The IRS is not looking to go through the trouble of sending someone else to jail or have a wage garnished in order to recover the owed money. In fact, the IRS looks forward to recovering the remaining portion of the debt through future income and not through criminal charges. Taxpayers are encouraged to look into this tax relief program and see what it can do for them. There are many qualified professionals who can help an individual determine his or her eligibility for this tax relief program. Individuals and small businesses should not ignore the potential of getting tax relief because it may be their only option. For this and other reasons, applying for a tax relief program is strongly advised. It is never too early to start preparing your tax return because it could be the beginning of the end of paying too much in taxes.