When you owe the IRS a substantial amount of money, you might wonder how you can get it paid in full without incurring costly interest and penalties. Rather than going deeply into debt, you could pay off what you owe affordably by making use of the IRS Fresh Start Program. You can decide if this program is right for your tax debt situation by learning what it is and how to apply for it today.
The IRS Fresh Start Program is a program that is designed to allow taxpayers to pay off substantial tax debts affordably over the course of six years. Each month, taxpayers make payments that are based on their current income and the value of their liquid assets. By the end of six years, their tax debts should be paid off in full.
The IRS Fresh Start Program offers three repayment options to taxpayers. All three options allow people to pay off their tax debts legally and satisfactorily. They also allow people to avoid further penalties and interest that could cause undue financial hardships.
If you want to make an OIC to the IRS to pay off your debt, it is important that you make a reasonable offer, one that accurately reflects your current financial situation. Because the IRS accepts OICs on an infrequent basis, you may fare better to have a tax professional prepare and submit your offer to the IRS on your behalf. A tax professional can file the appropriate IRS forms and accurately report your financial situation so the OIC will be given its due credence and potentially accepted faster.