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The IRS has launched a new initiative known as the ‘Fresh Start Initiative’ which provides a lot of benefits to taxpayers who face financial difficulties in repaying the taxes. The main objective of this initiative is to help individuals and businesses pay their taxes without any other financial burden. It is very useful in minimizing or reducing the actual tax amount that an individual owes. Know more about IRS Tax Help Florida
The various reliefs provided by the IRS are:
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Liens on Taxes
This initiative has proved to be very instrumental in reducing the negative impact on taxpayers about their lien filing customs. The differences brought by this initiative are:
- Bringing up the dollar ceiling to a significant amount where generally the liens are issued, which results in lesser tax liens.
- Simplifying the procedure to obtain lien withdrawal after repayment of the tax bill for taxpayers.
- When a taxpayer switches to a direct debit instalment scheme, then such liens can be withdrawn.
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Agreement to Pay in Installments
This is a scheme that is extremely useful to small businesses and other taxpayers. It is vital to increase the dollar threshold limit so that additional taxpayers can also be welcomed.
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OIC (Offer in Compromise)
This initiative has extended the OIC program by undertaking more dynamic Offer-In-Compromise deals. It plays a major role in reducing the tax debt to a significant amount for people who face extreme financial difficulties in repaying the taxes and this can be done within a short period compared to previous schemes. Let us discuss what could be the meaning of the term Offer-In-Compromise (OIC). Offer in compromise is a deal between the taxpayer and the IRS to accept a lesser amount as a full settlement of the debt. It is a negotiation between two parties while one convinces the IRS about the financial difficulties faced by the individual and due to these valid reasons he/she is not able to pay the full amount. It is not as easy as it sounds because it takes a lot of compelling arguments to convince the IRS. Generally, the IRS does not accept a lesser amount if they think that the full amount can be paid wholly or through instalments. However, in certain instances, the IRS does accept the valid causes stated by the taxpayer for his inability to repay his/her tax debt. To support such taxpayers who are struggling financially the IRS has introduced several changes in the existing OIC programs. The changes mirror a more practical approach and are more considerate to real-life situations of many poor taxpayers. You might require the help of a tax professional if you are faced with such a situation. They will be able to come up with the best argument as to why you qualify for this scheme and can reduce your tax liability to a great extent.
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