Miami, FL, (PRWEB) April 05, 2012
Everyone likes quick and easy. The IRS is finally getting the picture and is making paying your back taxes as easy as getting a fast food burger. “This is an important change for taxpayers that owe back taxes to the IRS,” says Michael D. Sullivan, a leading tax specialist at Fresh Start Tax LLC, “By extending the terms and increasing the threshold for an Installment Agreement, more taxpayers will be able to resolve their back tax issues with installment agreements.
The Internal Revenue Service (“IRS”) has just launched a new program called “Fresh Start” that will allow taxpayers who owe back taxes and have back tax debt to make payments to the IRS over a longer period of time with less hassle. Starting right now, taxpayers who owe up to $50,000 in back taxes are now able to enter into a streamlined agreement with the IRS that stretches the installment plan to a maximum of 72 months. However, it is important to note that penalties and interest continue to run until the tax debt is paid in full and all tax returns must be current.
The IRS (http://www.irs.gov), announced in Issue Number IR-2012-31 that, effective immediately, the threshold for using an installment agreement without having to supply the IRS with a financial statement has been raised from $25,000 to $50,000. According to the IRS Inspector General, of the 23 million taxpayers that owe IRS back taxes, approximately 80% of those taxpayers owe under $50,000 in back tax debt.
According to Sullivan, in the past, if you owed past due taxes it was almost impossible to set up a payment plan and the IRS made it exceedingly difficult to get a payment plan. Not only was it almost impossible, but the IRS wanted far more money from the taxpayer than they could afford to pay. They also made unreasonable requests of back up documentation
“Of course, there are other options for people who owe back taxes,” states Sullivan, a veteran IRS Officer/Agent, IRS Tax Instructor and Industry Insider. “Some taxpayers may be eligible for an Offer in Compromise or a Tax Debt Settlement.” For more information about Offer in Compromise, please visit http://www.freshstarttax.com/offer-in-compromise.php.
As per the IRS, taxpayers seeking installment agreements or payment plans exceeding $50,000 will still need to supply the IRS with a Collection Information Statement (Form 433-A or Form 433-F). Taxpayers that have the ability should pay down their balance due to under $50,000 or less to take advantage of this payment option. An installment agreement is an option for those who cannot pay their entire tax bills by the due date. In order to qualify for the new expanded streamlined installment agreement, a taxpayer must agree to monthly direct debit payments and you must be current on your tax filing.
If you have a larger dollar case or need assistance with IRS matters, enlist the help of a trusted tax professional at Fresh Start Tax LLC. It is always best to use a professional tax company in larger dollar cases. To learn more about Fresh Start Tax LLC, please visit our website at http://www.freshstarttax.com.
About Fresh Start Tax: Fresh Start Tax LLC was formed by a dedicated team of tax professionals that include Board Certified Tax Attorneys, CPAs, Enrolled Agents, former IRS Agents, Managers, and Instructors. Our tax professionals have over 205 years of combined professional tax experience and over 60 years of IRS experience. Fresh Start Tax LLC can provide immediate representation and stop the intrusions into your business and personal life.