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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 comments are in blue. This post is about the In business IRS trust fund installment agreement.
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”.
http://www.irs.gov/businesses/small/article/0,,id=239096,00.html
These installment agreements generally do not require a financial statement or financial verification as part of the application process. If you don’t want to submit financial information to the IRS, this is the plan for you. The problem is you must meet the below criteria. Most people don’t realize that collection efforts don’t trigger audits. If you’re worried about scrutiny, don’t. Revenue Officers are not auditors, and only care about collecting from people who owe the IRS back taxes.
The criteria to qualify for an In Business Trust Fund-Express IRS Installment Agreement are:
To Request an In-Business Trust Fund Express Installment Agreement:
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.
irs back tax help 