Over the past several years, the Internal Revenue Service, “IRS,” started a program that would give taxpayers who fall under certain criteria a bit more leeway when it comes to Tax Liens, Installment Agreements, and Offers in Compromise.

Are you current with your taxes?

Have you filed all your income tax returns?

Answers to these questions in the negative will have an impact on whether you qualify.

The Fresh Start program also expanded criteria for streamlined installment agreements with taxpayers. If an individual taxpayer owes $50,000.00 or less, installment payments can be made by direct debit for up to six (6) years! In this particular situation, the IRS may not even need financial statements from the taxpayer; however, they may still need some financial information.

If you happen to owe more than $50,000.00, or need a longer period of time to pay the liability, you will need to provide the IRS with a financial statement; therefore, consider an offer in compromise.

If you don’t already know, an offer in compromise is an agreement between the taxpayer and the IRS that permits you to settle your outstanding debt for less than what you owe. The Fresh Start also expanded and streamlined this program, making it much more accessible to taxpayers in general.

Offers in compromise, another program to settle your tax debt, can seem like they are very invasive of your privacy, and they can take extended periods of time for review by the IRS and subsequent negotiation. Some of the areas that the IRS looks at when considering an offer are the amount of the liability, taxpayer’s income, expenses, assets, and the statute of limitations on collection. If you are a candidate, then make sure you get qualified assistance for the best results.