One of the biggest unknown to IRS debtors is that under certain circumstances, most taxpayers can have their taxdebt partially forgiven by the IRS. The provision of the law made It possible to pay these debts in full without exorbitant penalties or interests. This provision is therefore called In the IRS Fresh Start Program that allows you to pay off your debts conveniently. Similarly, the IRS has expanded the program by adopting a more flexible program like Offer-in-Compromise that allows you to write off substantial parts of your tax debts conveniently. To this extent, the remaining balance can be spread over a maximum of six years agreeable payments via monthly installment. The payoff balance is usually pre-determined by the present income and the value of the taxpayer’s liquid assets. In addition to helping people pay off tax debts easily, the IRS Fresh Start Program will enable some of the most financially distressed taxpayers to clear up their tax problems, possibly more quickly than in the past without being subjected to interests, penalties, tax liens, seizure of assets, or wage garnishments. The Fresh Start repayment process can be instituted once your IRS tax debt is up to $50,000, by choosing one of the three available repayment plans. The IRS began Fresh Start in 2008 to help struggling taxpayers. It was also lengthened in 2012 to help individual taxpayers or corporate tax-paying bodies with up to $50,000 tax debts. The IRS Fresh Start Program recognizes that many taxpayers are still struggling to pay their bills because of unemployment and its likes so they have put in place this program. The IRS penalties can be waived for taxpayers who have been unemployed. More so, individuals who have been unemployed for a duration of over 30 days are also eligible to request a six-month extension to file and pay the owed taxes with zero IRS penalties. Repayment options available under the IRS Fresh Start Program The IRS Fresh Start Program has made it possible for IRS debtors to choose among three available repayment options. These repayment plans are intended to allow the suitable pay off of tax debts according to the law, as well as to protect IRS Debtors from being subjected to other penalties and interests associated with the payment of these tax debts. 1. Extended Installment Agreement When a person owes the IRS money that they can’t pay in full, they typically will qualify to deal with the debt via a payment plan. This payment plan is called an “installment agreement” in IRS terminology. Simply stated, an installment agreement is a contract with the IRS to pay the taxes you owe within an extended time frame. IRS Debtors can spread their payment over six years, without any form of interests or penalties. With this option, the IRS collection activities like the seizure of assets, tax liens, and wage garnishments will be put on hold. The Extended Installment Agreement is the most ideal among beneficiaries of the IRS Fresh Start program. 2. Offer in Compromise (OIC) The OIC is not commonly used as the Extended Installment Agreement. Though, it is a feasible repayment plan for taxpayers who intend to work out their IRS debts. An offer in compromise is a tool that many taxpayers can use to settle their federal tax debts. If a person owes money to the IRS but cannot afford to pay the full debt due to substantial life events, such as significant loss of income, disability or any other circumstances that will create hardship to the taxpayer if such payments are made in full. In this case, the taxpayer may be able to offer the IRS a smaller that is more affordable as settlement. The IRS called this process offer in compromise (OIC). The offer can include a lump sum payment or a series of payments over a period of months. Unlike a traditional IRS payment plan, if the IRS accepts the OIC and the taxpayer pays as agreed.it is important to note that the chances of getting an OIC approved is higher if the taxpayer makes a reasonable offer to the IRS. Such a proposal must be based on the current financial situation of the taxpayer. It is advisable to work with a tax professional, who would help prepare and submit an acceptable offer to the IRS on behalf of the taxpayer.

Businesses or Individuals who have a tax debt they cannot pay may have heard that they can settle their tax debt for less than the full amount owed. It’s called an Offer in Compromise. It’s not universally approved and there are a lot of requirements that go into obtaining approval, but the process is traversable with the appropriate help and the right resources. It’s never necessary to deal with these things alone, so keep reading to learn how to get the help you need. What to Expect if Your Offer Is Accepted The acceptance of the offer is only the beginning of your opportunity to get some resolution. That means you’ll have to ensure compliance with all the stages of the repayment plan to avoid invalidating it. You also need to realize that the federal tax lien will remain until the payment plan is completed, so if it involves more than 12 installments, be ready to accommodate it in future financial planning. Getting the Help You Deserve With Your Tax Debt Tax debt relief is a crucial component of achieving financial freedom from the IRS. That’s why we want to give you a top-to-bottom rundown of tax debt relief. We’re going to walk you through the ABCs of tax relief, from why you need it to how it works. We’ll also answer some tax debt relief FAQs so you know exactly what to expect at every step of the tax relief. Other Important Information If you currently do not have an outstanding federal tax lien, one may be filed as part of the review and approval process while you are negotiating an offer. The payment and assessment process is also extended during the review period, and your non-refundable payments take the place of any pre-existing installment plan you might have been paying toward. There’s also a self-help tool online a few keystrokes away that can help you better understand the process the IRS uses for evaluating these offer applications and deciding what to extend as a compromise. If you are currently going through bankruptcy the IRS will not approve offers proceedings because your tax debt might fall under the purview of the judge ordering your debt restructuring and discharge. Make sure you handle any bankruptcy proceedings before you begin the process of reaching a compromise with the agency. We will help you prepare a great offer, coupled with a well-detailed financial report, which would increase the chances of the IRS accepting the offer promptly.