If you are behind on your federal income taxes, you may be eligible for the IRS Fresh Start program. This program will make it easier for you to catch up on your back taxes. There are three important features to this program which you should know.

Three Features of the IRS Fresh Start Program

1. Tax Liens  

The amount that you owe before the IRS will file a tax lien has been increased to $10,000. This is the general rule, and the IRS may lower that threshold under certain circumstances.

When you meet certain requirements and pay off your tax debt, you are now prepared to request that the IRS withdraw the tax lien, by using Form 12277, which is an Application for Withdrawal.

If you are paying your back taxes through a Direct Debit installment agreement, you may qualify to have the tax lien withdrawn. However, if you default on this agreement, the IRS may file a new Notice of Federal Tax Lien. Raichelson Law, P.C. will guide you through the process.

2. Installment Agreements

You can now obtain a streamlined installment agreement if you owe less than $50,000 in past due taxes. RaichelsonLaw, P.C. will assist you in making arrangements to repay the amount due for up to 72 months through monthly direct debit. Raichelson Law, P.C. will assist you in gathering up the financial information necessary to qualify for a streamlined installment agreement and will draft for you Form 9465, which is the Installment Agreement.  

If you owe more than $50,000, you will be required to provide the IRS with financial information and financial statement on either Collection Information Statement, Form 433-A or Form 433-F. Raichelson Law, P.C. will assist you in gathering up the information and submitting these forms.

3. Offers in Compromise

An Offer in Compromise (“OIC”) is an agreement that allows taxpayers to settle their tax debt for less than the full amount. The IRS Fresh Start program expanded and streamlined the OIC program, and this program is available to a larger group of taxpayers. Raichelson Law, P.C. has expertise in the OIC process, and we will make it as easy as possible for you. We have an OIC pre-qualifier tool, and Raichelson Law, P.C. will determine your potential for qualification before submitting anything to the IRS.

At Raichelson Law, P.C., our team of experienced lawyers bring substantial knowledge of tax and debt law to help individuals, families and businesses in the Ventura and Los Angeles counties get the best possible outcomes from their tax- and debt-related concerns. Contact us today for expert help with tax resolution, or tax controversy.