To help struggling taxpayers settle their debt during these tough economic time, the IRS initiated the Fresh Start Program which implements policy changes to penalty abatements, Offers in Compromise, installments agreements, and lien filings.
- With the recent economic downturn, the IRS has begun allowing unemployment as a good reason for a penalty abatement.
- An offer in compromise now covers a larger group of taxpayers. Originally, only taxpayers who had a tax liability of $25,000 or less qualified for an OIC. However, that limit has been increased to $50,000. Also, taxpayers with annual incomes of up to $100,000 may qualify.
- Small businesses owing as much as $25,000 will qualify for an installment agreement; an increase from $10,000. In addition, individuals who owe more than $25,000 but less than $50,000 may no longer needs to provide full financial statements and pay over 72 months.
- Tax liens threshold was originally $5,000. But the IRS has increased the threshold of when liens are generally filed to $10,000. Also, the IRS now allows a lien "withdrawal" instead of a "release". A "withdrawal" will expunge a tax lien from the taxpayers credit, as if it never happened.
Please note that certain qualifications apply. Please consult a tax resolution professional or call The Taxperts at 1-877-834-6409.