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2014 IRS Fresh Start Initiative for Back Taxes and Tax Resolution Radio and TV ads
2014 IRS Fresh Start Initiative
irs back tax help initially discussed the IRS Fresh Start Initiative back in 2012. The purpose of the program was to expand the options available to pay back overdue taxes. Lately, there has been a resurgence of radio ads and marketing revolving around the IRS’ program to solve back tax problems.
This is an update on the Fresh Start Initiative if you past due taxes discussion for 2014.
As usual, If you like the tone of this writing, I would like to refer you to someone who meets irs back tax help criteria. Please contact irs back tax help for a referral. Before you email me, please read “About irs back tax help.”
First, here’s the latest update from the IRS 2014 Fresh Start Initiative. (Updated as of April 10th, 2014)
The federal fresh start initiative for past due taxes affect 3 specific areas:
1. The threshold for filing of federal tax liens (IRS Form 668y). The IRS will only file tax liens on amounts over $10,000, but reserves the right to file on smaller amounts if they feel it will aid in the IRS collection process for past due taxes.
2. IRS Installment Agreements. You can set up your own IRS pay plan online if you owe personal income taxes (less than $50,000) and if you owe back 941 payroll taxes (less than $25,000.)
3. IRS Offer in Compromise (IRS Form 656). Changes include revised calculations for future income, allowing delinquent taxpayers to pay their student loans, allowing people with IRS tax debt to pay state and local delinquent taxes, and expanding the Allowable Living Expenses allowance category and amount if taxes are owed. There is also an IRS Offer in Compromise Pre-Qualifier Tool that you can use to see if a tax resolution company is advising the right course of action.
No individual tax resolution company has a special angle on resolving tax problems. On the other hand, anyone who advertised back tax solutions on TV or radio is spending a tremendous amount of money to place those ads about the IRS Fresh Start Initiative for taxes owed. A large advertising budget can place stress on a company to take on tax problems or propose a back tax resolution plan that is not in the best interest of the delinquent taxpayer or the IRS.
Overall, there hasn’t been a great deal of change in 2014 to the IRS Fresh Start Initiative. There have been minor changes for the better. It seemed worthwhile to discuss the back tax solution programs again since tax resolution company marketing efforts have started to pop back up touting “new” back tax fixes. The goal of this discussion is to give you a framework for evaluating both the IRS actions in regard to collecting back taxes, and the marketing efforts of a back tax help company.
All irs back tax help writing is in blue. Below is a link to the IRS Fresh Start Initiative that helps people who are dealing with overdue IRS tax. effective 3/12/2012. If you have questions about this review, please reference: bp108.
As usual, If you like the tone of this writing, I would like to refer you to someone who meets irs back tax help criteria. Please contact irs back tax help. Before you email me, please click on and read “About irs back tax help.”
First, last year’s review: 2011 IRS Fresh Start Initiative.
The irs.gov link and full original text: 2012 IRS Fresh Start Initiative.
New changes in IRS Collection policy for 2012 are reviewed below.
The IRS “What Ifs” for taxpayers in an Economic Downturn
Click “About irs back tax help” to learn about us or read irs back tax help Testimonials to see how we treat people.
If you would like irs back tax help to be your first or second opinion, I can be reached at irsbacktaxhelp@gmail.com. I do not pressure people in an already stressful situation.
Regards,
This is a review of an IRS Appeals Summary Judgement. You can learn from this Taxpayer’s mistakes. If you have questions about this post, please reference: BP83.
If you know you need to take action, read my post about “IF” you should hire IRS back tax help. (You should not automatically.) titled “Owe IRS back taxes? When, who, and how do I hire IRS back tax help?” before you do anything else.
As usual, If you like the tone of these reviews, I would like to compete for your business. I can be reached at irsbacktaxhelp@gmail.com. Before you email me, please click on and read “About irs back tax help.”
“Petitioner submitted some of the requested information but failed to submit bank statements. Because petitioner failed to submit the requested bank statement information, the Appeals officer was unable to accurately ascertain petitioner’s financial circumstances and, consequently, determined that she could not calculate the appropriate installment agreement terms or grant petitioner CNC status. In the absence of the requested information, respondent’s Appeals officer did not abuse her discretion in denying petitioner’s request for collection alternatives.”
I thought I was the only one who wrote really long sentences! The full read is a little stuffy. The short version is this:
Why are the requests of the taxpayer a mistake? They are all the same mistake. Taxpayer is trying to force a square peg through a round hole. What the taxpayer wanted was reasonable, but he wanted a giant, bureaucratic collection agent to change its ways to conform to him. You must be able to speak the “collection” language.
Taxpayer’s reluctance to turn over bank records really hurt him. The IRS Revenue Officer has a duty to the taxpayers to perform due diligence on each past due tax situation. Everything he wanted was achievable, (assuming no criminal intent,) but he didn’t know how to ask for it the right way because he lacked the experience in navigating the system.
If you think you should hire a tax resolution expert, please read About irs back tax help. If you would like irs back tax help to be your first or second opinion, I can be reached at irsbacktaxhelp@gmail.com.
Regards,
irs back tax help
This blog is intended to generate discussion, so if you have questions or comments, don’t be shy! All IRS Back Tax Help comments are in blue. All text in black is from the original post.
If you know you need to take action, read my thread about whether or not you should hire someone (You shouldn’t automatically) titled “How do I hire IRS back tax help?” Here’s the link:
As usual, If you like the tone of these posts, contact me for consultation. I can be reached at irsbacktaxhelp@gmail.com. Before you email me, please click on and read “About IRS BACK TAX HELP”.
original irs.gov post and full text here: http://www.irs.gov/pub/irs-pdf/f9465.pdf
This is the link to fill out the form for the IRS if you owe $25,000 or less in IRS 1040 personal income back taxes. Don’t hire anyone to help unless you meet the three reasons listed in my other post. Take care of yourself and make this a priority!
All IRS Back Tax Help comments are in blue. If you have any questions on this topic, please refer to BP4.
If you know you need to take action, read my thread about whether or not you should hire someone (You should not automatically) titled “Owe IRS back taxes? When, who, and how do I hire IRS back tax help?”
As usual, If you like the tone of these posts, contact me for consultation. I can be reached at irsbacktaxhelp@gmail.com. Before you email me, please click on and read “About irs back tax help”.
IRS link to sign up online for IRS installment agreement if you owe less than $25k
If you owe less than $25,000 to the state or IRS, I always encourage people to try to handle the past due taxes on their own first. Why? Because I like to deliver ROI to people who hire me.
When you owe less than $25k, it is hard to justify attorney’s fees to solve the problem. There are three reasons you should consider representation if you owe $25k or less in over due IRS taxes:
1. You simply don’t have the time. If you are the primary revenue generator in your job or your business, have someone else handle this. They will eliminate the guess-work, and won’t make any missteps if they are reputable, experienced, and can cover the IRS coast to coast. Another way to phrase this is by the hour. If your time is worth more than $250/hr, you should find someone who cost less per hour. There are national reputable companies whose hourly rate are less than that, and you can bill your time to help solve your problem. If your time is worth more, and you spend the time to deal with the IRS. You are losing money and paying out money simultaneously. Which does not pass the common sense test.
2. You have lost control of the situation. If you have an IRS bank levy, an IRS wage garnishment, or IRS asset seizure, it means you have lost control of the situation. If you do not think you have, you are wrong. The IRS is now in control of your bank account, your paycheck, or your equity. If this is happening to you, lawyer up. There is a better/cheaper way to solve your back tax problem.
3. Whatever the IRS is demanding to pay your back taxes doesn’t make sense. If the IRS installment agreement, or wage garnishment, or full paying the over due tax will damage your immediate future, or your life over the long haul, don’t agree to it. If you owe back taxes, there is a solution that will pass the common sense test, insist on it). If you feel like their solution to solve your back tax problem will cause other problems, do not agree and ruin your life, get help now from someone who can fix this problem and allow you to recover and move forward with your life.
(this is for 1040 income taxes owed. If you owe IRS 941 payroll tax the rules are different. If you have IRS payroll tax problems, email me or post your questions here. The IRS is more strict about payroll tax solutions.)
“You can make monthly payments through an installment agreement if you’re not financially able to pay your tax debt immediately. Before you apply:
Penalties and interest continue to accrue until your balance is paid in full.” For some reason, people think this stops if you enter a formal agreement. It does not. No matter what the Revenue Officer says. “If you are in danger of defaulting on your payment agreement for any reason, contact the IRS immediately. The IRS will generally not take enforced collection actions:” There are legal restraints, make sure they are honored.
This blog is intended to generate discussion, so if you have questions or comments, don’t be shy! This post is about how to pay the IRS back in a way that makes sense for you. All IRS Back Tax Help comments are in blue. All text in black is from the original post. If you have questions about this post, please refer to bp3, or visit the irs back tax help Official Website.
As usual, If you like the tone of this writing, I would like to refer you to someone who meets irs back tax help criteria. Please contact irs back tax help. Before you email me, please click on and read “About irs back tax help.”
Original irs.gov link and full text: What are my IRS back tax payment options?
“Because your balance is subject to interest and a monthly late payment penalty, it is in your best interest to pay in full as soon as you can to minimize the additional charges.”
True. However, if you are over-committing to try to fix this, and causing yourself other problems, a reasonable installment agreement may make more sense. I have heard countless stories about people ending up in bankruptcy because everything else failed because all of their money was going toward a back tax problem.
“Penalties are also assessed for failure to file a tax return so you should file immediately even if you cannot pay your balance in full.”
Very good advice, do not fall into the “I can’t pay so why should I file” blues. It is much easier to avoid this IRS penalty altogether than it is to abate the failure to file IRS penalty. So always file, even if you cannot pay.
Helpful IRS phone numbers: 888-872-9829, Link2Gov Corporation at 888-729-1040, or RBS WorldPay, Inc. at 888-972-9829.
If you cannot pay in full, you should pay as much as possible to reduce the accrual of interest on your account. Please refer to Topic 158 for information needed to ensure that your payment is credited properly. I don’t like this sentence because it doesn’t warn you of the real problem: IRS penalty. The IRS interest rate for past due tax is 4%, the IRS penalties are much higher literally 30-40% over what you really owe.
You should consider financing the full pay ment of your tax liability through loans, such as a home equity loan from a financial institution or a credit card cash advance. I’m ok with this as long as it doesn’t put your home (or other collateral) at risk. IRS installment agreements can be renegotiated. Defaulted loans get foreclosed. If you’re not sure about future cash flow, an IRS installment agreement may be preferred.
Installment Agreements
An installment agreement allows you to make a series of monthly payments over time. The IRS offers various options for making monthly payments. In a regular IRS installment agreement, you can have up to 5 years to pay back the IRS back taxes if you need it.
If you enter into an installment agreement, your monthly payment should be based on your ability to pay and should be an amount that you can pay each month to avoid defaulting. If you can afford to make monthly payments, regardless of how small you should. Do not wait for the IRS to contact you. Doing this builds good will, and creates a history of good intent on your part. It also mitigates the growth of IRS penalty and interest.
irs back tax help 