Beginning in  2011, the Fresh Start Initiative is a compilation of new steps to help taxpayers get a fresh start with their tax liabilities. The goal is to help individuals and small businesses meet their tax obligations without adding unnecessary burdens to taxpayers.

Your life has taken a turn for the worse,  the company you work for has made your full-time job into a part-time job and your hours are unpredictable. You have the money to pay for the essentials of daily living, like groceries, utilities, rent, etc. Worst, you still must pay your taxes. There may be a way to stop IRS from chasing after that debt.   There are times where you agree you owe the IRS, but you can't pay due to your current financial situation. If the IRS agrees you can't pay both your taxes and your reasonable living expenses, it may place your…

PENNIES ON THE DOLLAR SETTLEMENTS You're aware that you owe back taxes, but you've been putting it off. You've been very stressed out about it, but now you have a letter from the IRS that requires your attention. It's important that you respond promptly.     An Offer in Compromise allows you to settle your tax debt for less than the full amount you owe. It may be a legitimate option if you can't pay your full tax liability, or doing so will create a financial hardship.  The IRS generally approves an offer in compromise when the amount offered represents the most the IRS can expect to collect within…

The IRS enhanced criteria for both streamlined and expanded installment agreements improves customer service, reduces taxpayer burden, and increases agency efficiency. With the enhanced criteria, more taxpayers now qualify to have their installment agreement request processed. A payment plan is an agreement with the IRS to pay the taxes you owe within an extended timeframe.  You should request a payment plan if you believe you will be able to pay your taxes in full within the extended timeframe. If you qualify for a short-term payment plan you may not be liable for a user fee. Not paying your taxes when they are due may cause…

You procrastinated too long and failed to file your taxes by the deadline. You didn't put aside enough to pay the tax, and now you will probably have a failure to pay penalty.    Common penalties include:  Failure to file - when you don't file your tax return by the return due date, April 15th, or extended due date if an extension to file is requested and approved.  Failure to pay - when you don't pay the taxes reported on your return in full by the due date, April 15th. An extension to file doesn't extend the time to pay.  Failure to pay proper estimated tax…