Is The IRS Fresh Start Program Right For You?
If you owe back taxes you can’t afford to pay, it can seem that your tax debt is a hopeless situation and that you are doomed to suffer harsh penalties from the IRS.
Fortunately, the IRS offers options to those taxpayers who are unable to pay their tax debt. One such program, the Fresh Start Program, can help you pay off your tax debt while avoiding IRS actions such as wage garnishment, tax liens, seizure of your property, and even criminal charges.
Most Self-Prepared OIC Applications Are Denied
An OIC is completely dependent upon the taxpayer’s ability, or inability, to pay back their taxes. Because of the complexity of the qualifying requirements—and because the majority of OIC applications that are self-prepared are done incorrectly—the majority of applications are denied. Few taxpayers are familiar with the complex formulas used to calculate the qualifications for an OIC, such as allowable expenses, expenses based on geographical location, and income and asset allocation. The result is a 95-percent decline rate in self-prepared applications.
Key Tax Group can help you get an OIC
Why choose Key Tax Group? We are an experienced tax law firm that specializes in tax debt resolution. We proudly serve more than 3,000 clients each year and have resolved more than $175 million in tax debt. We are also accredited by the Better Business Bureau and our services have been awarded an A grade.
To take advantage of an OIC and increase the likelihood that you will ultimately qualify for the program, consulting with a tax professional is essential. At Key Tax Group, we will determine if you potentially qualify for an OIC by conducting a comprehensive financial interview with you and identifying the documents needed in order to give you the strongest chance for approval. Our job is simple: prevent aggressive collection activities and prevent the taxing authorities from upending your world financially by keeping them out of your bank accounts and away from your paychecks.
Additional programs offered through the Fresh Start program
Installment agreements: An installment agreement is a payment plan based on financials. Individual taxpayers owing up to $50,000 may be able to make monthly direct debit payments for up to 72 months without a financial statement, while those who need installment agreements for debts above $50,000 and more than six years to pay do need to provide a financial statement.
If your debt is under $50,000, we will set up an installment agreement that pays the debt off within 72 months. Since the payments are run through direct debit, we can ensure that a tax lien is not filed. If a tax lien already exists, then after 4 consecutive payments have been made we can petition for a tax lien removal. This is critical to the health of your credit.
Installment agreements must be carefully prepared or else the taxpayer risks the amounts being unreasonable and expensive to the point of almost unaffordable. As with any request to the IRS for any type of tax debt resolution, the help of experienced tax professionals is critical to reaching an acceptable resolution.
Tax liens: In most cases, taxpayers can owe $10,000 before receiving a Notice of Federal Tax Lien from the IRS. When certain conditions are met, including paying off their tax debt, the IRS may withdraw the filed notice. Taxpayers may also qualify to have the notice withdrawn if they are paying off their debt through the direct debit installment agreement described above.
OIC / Fresh Start Program FAQs
Contact Key Tax Group For Tax Relief Solutions
Why choose Key Tax Group? We are an experienced tax law firm that specializes in only tax resolution. We proudly serve over 3,000 clients each year and have resolved more than $175 million in tax debt. We are also accredited by the Better Business Bureau and our services have been awarded an ‘A’ grade.
If you are having difficulty with tax debt or would like to learn more about Offers in Compromise, please contact us today for a free initial consultation with one of our tax professionals.