If you owe money to the Internal Revenue Service (IRS), it can be a stressful and overwhelming situation. However, it is important to remember that there are options available to help you get back on track with the IRS and start fresh.
Here are some steps you can take to initiate on an IRS fresh start.
File your tax returns
If you have not filed your tax returns, this should be your first step. Filing your tax returns is important to determine how much you owe the IRS and to avoid additional penalties for failing to file.
Determine your payment options
Once you know how much you owe, you can determine your payment options. The IRS offers several payment plans, including an instalment agreement, an offer in compromise, and a temporary delay of collection. These options can help you pay off your debt over time, or reduce the amount you owe.
Reach out to the IRS
If you are struggling to pay your taxes, it is important to reach out to the IRS and explain your situation. They may be ready to work with you for finding a solution that may work for both parties.
One program that can be particularly helpful for those who owe taxes is the IRS Fresh Start program. This program is designed to help taxpayers who are struggling to pay their taxes by offering more lenient terms for payment plans, reducing penalties, and allowing more taxpayers to qualify for an offer in compromise.
To qualify for the Fresh Start program, you must meet certain criteria, such as having an outstanding tax debt of $50,000 or less.
If you are dealing with tax debt, it is important to take action to resolve the situation. By filing your tax returns, determining your payment options, and reaching out to the IRS for assistance, you can start on the path towards a fresh start with the IRS.