Back in 2008, the IRS Fresh Start Program was initially created to help individuals and business owners who owed back taxes, pay back their balances affordably over the course of six years. The IRS simplified the process of collection by avoiding many of the drawbacks of owing back taxes such as: penalties, interest, tax liens, wage garnishments, and in the case of planning to seize assets. This allowed making it easier for taxpayers to get back on track through installment plans.
Initially the program was designed to help taxpayers who owed less than $50,000 but was expanded in 2012 to alleviate the financial burden of taxpayers who owe up to $50,000.
Why should someone seek Tax Resolution?
The biggest reason on why someone would seek Tax Resolution is if they are in a predicimitment where they owe more in taxes than they bring in income; essentially, when a taxpayer is finding difficulty affording to pay back their obligations. When your taxes are in a delinquent status working to resolve your them is a time sensitive matter. The longer left unresolved, the more penalties and interest are accrued; but even that has a limit before the IRS conducts aggressive collection tactics.
The last stage a taxpayer wants to be in is when the IRS feels it is appropriate to use forceful collection tactics against you to secure the owed balance. Legally the IRS can:
Garnish your wages
Levy your bank account
Put Tax Liens
How do I know which Tax Resolution Option is for me?
The only way for a taxpayer to know which Tax Resolution option is the best for them is really only by knowing the tax codes and doing extensive research. Investing such time for most taxpayers is a difficult task to devote as it interferes with important life responsibilities and make things overwhelming.
In scenarios such as these, a taxpayer may find the best investment they can make is in themselves and seek professional help. Working with a tax consulting group can save you time and money as they are skilled and trained in the areas of Tax Resolution and can find the best option for you in a faster time frame.
Overall, there’s over 17 different resolution options the average taxpayer qualifies for; however, depending on the case, more options may be available and vice versa.
Why Palmer Tax Group?
In any circumstance, the aid of someone experienced and knowledgeable in a related profession can always be beneficial when accomplishing a goal. In the matter of resolving taxes and living a busy life, Palmer Tax Group can ease the process and take control of the resolution, without the overwhelmness. Our team has a combined total of over two decades helping taxpayers find the best Tax Resolution and helping them resolve the issue.