The Internal Revenue Service has a maximum of 10 years to collect tax liability when that time expired, the obligation is entirely wiped clean and removed from the taxpayer’s account.
Tax Debt Liability: How Does Fresh Start Program Help (PHOTO: www.ciat.org)
Tax Debt Liability: Here’s What To Know
Receiving tax bills that you can’t pay off is one of the most taxpayer problems. That’s why Internal Revenue Office offers Fresh Start Program. This program provides tax relief to selected taxpayers who owe money to the IRS.
It started way back in 2011 with rules focusing on taxpayers with tax debt, but no federal tax liens against them. The program was designed for first-time taxpayers who have a debt to IRS.
This program basically helps make it easier for taxpayers to pay off their heavy taxes. Several American households having hard time pay their federal taxes. Back in 2021, more than half of American households did not pay their income taxes as they were assessed to not be able to do so due to their financial situations.
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The Fresh Start Program is actually beneficial for both IRS and taxpayers. It’s a win-win situation. IRS will receive some form of payment rather than simply being ghosted by the tax debtor. The taxpayer wins also because they’ll get back in good and all their criminal penalties, fines, and more will be wiped clean.
The Fresh Start Program works when your tax documents say that you can’t pay your debt in full. You’ll be required to fill up some forms to explain your financial situation. It is a reasonable arrangement that is good for both parties.
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