Thousands of US residents will benefit from an expanded Fresh Start that forgives tax debt

The Fresh Start Program is one of the leading debt relief and management programs. It was promoted by the Internal Revenue Service and is intended to help taxpayers who have federal tax debts beyond their ability to pay.

In this sense, there is an example of countries offering the option of tax relief to some taxpayers who owe money to the treasury.

The United States, for its part, is no exception to the rule and many of its families have had difficulties paying federal taxes.

Therefore, many US citizens are wondering if the Internal Revenue Service (IRS) offers them a similar opportunity. Not a few have to wait to see if the tax debt is forgiven after a certain period of time.

If we follow this line, it is fair to state that in 2021, more than half of American households did not pay federal income taxes. This is because it was considered that they were unable to do so due to their financial situation.

What is being done about it?

To help even more taxpayers, the IRS has expanded the Fresh Start program by adopting a more flexible in terms of settlement (OIC) offering.

OIC is the agreement between a taxpayer and the IRS that settles the taxpayer’s tax liability for less than the amount due in full.

However, ICOs are subject to acceptance of legal requirements. Therefore, the IRS examines the taxpayer’s income and assets to determine the taxpayer’s reasonable collection potential.

There is a very important fact that most taxpayers are still unaware of.

See also  The White House says the change of attitude toward Cuba continues outside of Biden's priorities

At the IRS 10 years to collect unpaid tax debts. Although if you don’t do so within this decade, you are required to forgo the debt because of the 10-year statute of limitations. On the other hand, collection law includes some guidelines that can extend the above term.

Leave a Reply

Your email address will not be published. Required fields are marked *