Platinum Tax Defenders Notes Recent IRS Leniency in Payment Plans

With the "Fresh Start" program offering more relief for those buried under back taxes, Platinum Tax Defenders urges taxpayers to take advantage of an IRS payment plan after consultation with a tax resolution specialist.

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“There is no such a thing as one size fits all when it comes to tax solutions. Our goal is to get to know each client’s financial situation and negotiate the best repayment option on their behalf, and guide them through this challenging process.”

Los Angeles, California (PRWEB) January 09, 2013

Early in 2012, the IRS announced more penalty relief for those burdened with back taxes, especially the unemployed. The "Fresh Start" initiative was expanded to include relief for those who had suffered unemployment for 30 days or more, waiving 'failure-to-pay' penalties. Thresholds were doubled for those eligible for payment plans. Some low income earners and certain self-employed workers are allowed a six-month grace period without penalties. Platinum Tax Defenders urges taxpayers to consult a tax resolution services specialist and take advantage of these relaxed requirements.

Certain strictures still apply for IRS payment plans. It may be essential to obtain help with back taxes. One stricture for an IRS payment plan is that each of the prior six years' returns must be filed before an agreement can be reached. Payment timing also depends on the payment amount and the amount owed. For taxpayers owing $10,000 or less, 36 months is the maximum time frame to make payment in full. (Also, taxpayers owing less than $10,000 may or may not qualify for penalty abatement, in which case there may be good reason to obtain professional tax resolution services.) Taxpayers owing more than $10,000 and less than $25,000 are eligible for a streamlined IRS payment plan, in which collections are waived so that reduced-interest payments can be made timely.

The "Fresh Start" initiative, one of the payment plan options, is eligible for those owing more than $25,000 but less than $50,000, with an expanded time frame of 72 months, and penalty abatement as a possibility after certain good faith payments have been met. 'Failure-to-pay' penalties, beginning at half of 1% and peaking at 25%, can be waived by those unemployed for a consecutive 30 days, but only for singles grossing $100,000 or married filers who have earned $200,000 annually, or less. Self-employed workers who prove a 25% reduction in business due to economic instability are also eligible for penalty relief. However, Platinum Tax Defenders notes that proving eligibility for unemployment or reduction in self-employment income can be difficult, and obtaining back tax help can be an essential element in avoiding penalties.

Platinum Tax Defenders especially urges those owing more than $50,000 in back taxes to consult with a tax expert. IRS payment plans at this level require full financial disclosure and negotiations on payment amounts, along with possible tax liens and collection actions. The 3% annual interest on unpaid back taxes becomes especially painful for taxpayers owing more than $50,000.

Platinum Tax Defenders offers a free consultation by phone, without further obligation, so that taxpayers can be informed of their rights and possible solutions. Platinum Tax Defenders has a dedicated team of 10 professionals (including tax attorneys, CPA's and former IRS agents) with a ten-year track record of stopping bank levies and removing tax liens. Most initial consultations range from 20 to 45 minutes, in which a qualified tax resolution professional can examine the specifics of the situation and offer strategies for dealing with the IRS.

For more information from Platinum Tax Defenders on stopping property seizure and getting help with back taxes, call 1-877-668-1807 or send an email to info(at)tax-resolution(dot)me.