IRS Fresh Start Initiative Gives Taxpayers Hope
The IRS Fresh Start initiative is a program designed to help more tax payers successfully pay off their tax liability. The initiative allows more flexible terms to Offer In Compromise (OIC) and enables some of the most financially distressed taxpayers to clear their tax liability and to do it more quickly. In many cases this allows people to resolve their tax liability in as little as 2 years instead of the 4-5 years that its taken in the past.
This Fresh Start initiative in different in that it uses a different standard of analysis to determine who can qualify for an Offer In Compromise. Some of the changes include:
- Revised calculations for tax payers future income
- Allowing taxpayers to repay student loans
- Allowing taxpayers to pay delinquent state and local taxes
- Expanding the Allowable Living Expense category and amount
An Offer In Compromise (OIC) typically is an agreement between the IRS and a taxpayer that settles the taxpayer’s tax liability for less than the full amount owed. A taxpayer has to apply for an OIC and be approved after a full review of qualifications. The IRS will not approve the OIC if they believe the tax liability owed can be paid in full- either as a lump sum or as part of an “Installment Agreement” that allows that tax payer to pay off the liability over time. Being a complicated, negotiated process, the help of an experienced tax attorney is essential. You’ll need an attorney who knows how to work with the IRS, understands the ins and outs of tax problem resolution, can help you figure out which option is best for you and is willing to fight for you.
California Attorney Gary Quackenbush has been helping people like you resolve tax problems with the IRS through Offers in Compromise and Installment plans since 1988. He knows the IRS and will fight for you. Make an appointment to meet with him for your free consultation soon to see what he can do for you to help alleviate your tax problems. Call the office at 858-549-8600 or click here to request your free consultation online.