The IRS has recently made changes to its Tax relief program (New Fresh Start Program) that makes it easier for taxpayers including small business taxpayers to settle their IRS debt for a reduced amount and avoid tax liens. Under the IRS New Fresh Start Program taxpayers would be able to resolve their debt problems quickly and for less money; however, it is advisable not to wait for the right time as these programs are constantly changing. If you are facing any IRS debt problem, this post will walk you through three important features of the IRS Fresh Start Program which will help you take the right foot forward.
What is a Tax Lien?
A federal tax lien is a government’s legal claim against delinquent taxpayer’s property in order to secure the payment of taxes. A tax lien can be imposed on the property, including real estate, personal property, and financial assets. Before the introduction of the Fresh Start Program, a tax lien could be filed even if the tax owed was less than $10,000. Now, the minimum owed amount should be $10,000 to qualify for the tax lien, but with some exceptions in cases wherein the IRS may still file a lien, irrespective of the amount owed.
How the Fresh Start Program Helps?
Under the Fresh Start Program if a taxpayer meets certain specified requirements by the IRS and pays off their tax debts, they can request the IRS to withdraw a filed notice of Federal Tax Lien by filing the form 12277 (Application of Withdrawal). Taxpayers may also request for lien notice withdraw if they agree to pay off their tax debts through a Direct Debit installment agreement. In this case too, taxpayers will have to request for the withdrawal in writing by filling the form 12277. In case a taxpayer fails to fulfil Direct Debit installment Agreement, the IRS may again file a fresh Notice of Federal Tax Lien for the collection purpose.
Seek Professional Assistance
IRS problems, such as a tax lien, is a legal problem. Therefore, it is advisable to not trust your IRS problems to some of the State Tax resolution companies. The Dallas local law office of Nick Nemeth has handled thousands of IRS cases. Our experienced tax lien attorney has an in-depth understanding of how the IRS operates. Whenever you contact us to resolve your IRS problems, your first visit to us is completely free and is kept confidential. No matter whether you have a tax lien, bank levy or any other IRS penalties, for any IRS help with taxes, feel free to call our office at (972) 426-2553.