While some people have no problem dealing with their taxes, plenty of others experience hardships managing and controlling things come tax time. In fact, Americans have fallen behind on their taxes to the tune of over $114 billion.
Thankfully, there are assistance options for those who find themselves struggling with their taxes. One such example is the IRS Fresh Start Program. It can be a helpful program for many people in need, but how do you know if you qualify?
Well, that is exactly what this article is going to take a closer look at. Read on to learn more about the qualifications required in order to see if you are eligible.
What is the IRS Fresh Start Program?
But before we look at the requirements for the program and who can qualify, let’s take a closer look at the program itself. The IRS Fresh Start Program was created to help taxpayers who may be struggling to pay their taxes. It has been around since 2012 and has helped countless people out.
Not being able to pay taxes can feel awful, and lead to a ton of stress and worry. Not only that, but the fees and related penalties can land people in an even more difficult financial situation that can be hard to get out of.
This program has several initiatives aimed at helping people that include payment plans, potential reductions in penalties, potential lien preventions, installment agreements, and more.
The program seeks to help people get back on track, and make it easier to manage and handle things once tax time rolls around. Be sure to check out this post by Tax Law Advocates for a more detailed look at the program.
Who Qualifies for the Program?
Now that you are familiar with the program itself, let’s go over what is necessary for someone to qualify for the program. First of all, there are no income requirements, so don’t worry about if you make too much or not enough to qualify.
However, there are other standards that need to be met in order to qualify. For example, you must have filed all of your required tax returns over the last three years.
Also, you need to agree to pay back the taxes you owe within six years, and the total amount you owe in taxes (plus any interest or penalties) must not exceed $50,000. You also must have made estimated required tax payments for the current year, and have not been involved in anything like tax evasion or fraud.
If you are self-employed, you need to be able to show that you had a 25% income reduction over the last year, as well. It is also crucial to keep in mind that each type of tax relief offered by this program may have additional requirements for eligibility.
If you meet the requirements, you can apply for the program. If you do not qualify for one reason or another, there are other options to consider, such as payment plans.
We hope that this article has helped you learn more about the IRS Fresh Start Program, and how you can find out if you qualify or not.https://www.financeteam.net/hard-money-tampa-lender/