BEND, Ore., October 29, 2019 (Newswire.com) – Who hasn’t seen an advertisement for “The IRS’ Fresh Start Initiative” recently? They’re everywhere. Fortress Financial Services, Inc., a national tax resolution company that only uses licensed tax attorneys for each back-tax case, explains the ins and outs of the IRS’ Fresh Start Initiative.
For the lucky few taxpayers to whom the Fresh Start Initiative applies, the following summarizes some of the key parts of the Fresh Start Initiative:
- The IRS increased the tax debt threshold from $5,000 to $10,000 before it files a Notice of Federal Tax Lien. However, in certain cases, the IRS may file the Notice of Federal Tax Lien even if a taxpayer owes less than $10,000.
- The taxpayer may request the IRS to withdraw a Notice of Federal Tax Lien if (a) the taxpayer owes less than $25,000 for an individual tax debt, (b) agrees to pay the IRS every month for 60 months directly from their bank account or wages (aka a direct-debit installment agreement), and (c) pay for three consecutive months under the direct-debit installment agreement.
- For a lump sum Offer in Compromise (OIC — an offer to settle the tax debt with a “lump sum” payable within five months), the IRS will only look at one year of future income instead of the normal four years. For short-term periodic OICs (an offer to pay the settlement amount in installments within six to 24 months), the IRS will only look at two years of future income instead of the normal five years. This opens the door to significantly lower settlement amounts for some taxpayers than those that were available previously.
- The IRS decreased the document requirements if a taxpayer owes $10,000 or less and attempt to claim a currently not collectible. A currently not collectible status means a taxpayer is unable to pay, as determined according to complex IRS rules and policies; thus, the IRS temporarily stops attempting to collect the tax debt owed.
Fortress Financial has knowledgeable and compassionate licensed tax attorneys who help their clients with back-tax issues regardless of whether it is for a single tax payer or a business with payroll tax issues. For anyone who owes back taxes, Fortress Financial Services is here to help.
Source: Fortress Financial Services, Inc.