The IRS can be rather strict in extracting their debt from taxpayers, regardless of their situation in life. In some cases, they even go as far as to sell off their assets and make them take a loan to pay their taxes.
Sounds scary, no?
Therefore, it is extremely important for you to be on top of your taxes, and not delay any payments. Of course, this is easier said than done. For instance, there might be certain unexpected expenses in life that deplete your financial supply, and leave you too insolvent to pay your taxes
In this scenario, as well, the IRS now has several provisions that you can choose to opt for to lessen the burden on your shoulders concerning tax payments.
What provisions are offered?
So what is IRS fresh start program? Not so recently, a new program was introduced known as the fresh start program, which was designed with taxpayers in mind, for those who were unable to pay their taxes back for whatever reason and help lessen the burden on their shoulders with regards to their pending tax payments.
With this program, you can easily negotiate a settlement with the IRS and come to a mutual understanding about the payment. Search negotiations can result in one of the following consequences:
- The IRS allows you to pay back your debt instalments such that you do not have to pay everything back in one month, and the burden is spread over a period that seems more manageable.
- Another, more popular thing, is an offer of compromise. Such an offer is basically when the IRS attempts to be sympathetic to your financial issues and presents a reduced sum that you can pay instead of the full amount.
There are more, but the IRS will only make one after assessing your assets and ability to repay a loan. In this way, they can tell if you actually need a compromise offer or if you’re just trying to scam the government. Never fall behind on payments since the longer you wait to file your taxes, the more interest and levies will accrue. Additionally, careful consideration is given before granting taxpayers any leniency, so don’t constantly try to use these laws as your safety net!