If you owe Uncle Sam a significant amount of money, it is understandable how stressful it could be to pay it all. It’s already bad enough that Americans are faced with the costs of inflation among other economic factors.
The IRS however, provides a way to help Americans struggling to pay their taxes through it Fresh Start Program.
The purpose of this initiative is to help you stay on track financially and to settle your tax debt without increasing your hardship. That includes wage garnishment and federal tax lien avoidance, offered in compromise and installment agreements to name a few.
Before you apply, you have to meet certain eligibility criteria and provide several key documents for the IRS to determine that you are eligible for the program.
- Tax help memo and financial calculations with calculator.
- A reduction of more than 25% is applied to self-employed individuals
- Tax payers who have a clean history with zero missed payments from the IRS
- Be able to pay the tax liability within 60 months or before collection statutes expire
“If an individual or business with substantial debt does not participate, the consequences can be severe, resulting in various penalties and interest fees. Additionally, taxpayers could be subjected to wage garnishments and liens,” a spokesperson from Ideal Tax said in a statement. “Getting assistance from a licensed tax professional is recommended for both getting your filings in line and negotiating with the IRS.”
It is recommended to avoid tax debt relief companies to prevent risks of being scammed. With those companies, search for red flags, like drastic claims about what that company can save you. Another place to spot red flags is by perusing a company’s reviews. If they are consistently bad, that’s a big sign to avoid that company. Plus, tax relief companies aren’t free, and that is an important factor to consider.
For more information visit idealtax.com.