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Fresh Start for IRS Debt

November 4th

In 2011, the IRS introduced the Fresh Start Program to help alleviate some of the burden faced by taxpayers in a troubled economy. The Fresh Start Program offers various ways to help taxpayers get some relief from their IRS debt while being able to pay back at least a portion of what they owe to the government. The biggest change is the grace period before penalty for non-payment of IRS debt.

Fresh Start

According to a tax debt lawyer, the Fresh Start grace period gives taxpayers time to avoid the penalties that would have normally been applied following a non-payment as of the due date of April 15. These penalties are applied at a rate of 0.5% per month on the total amount of the unpaid taxes, with a maximum penalty of 25% of the total owed. Under the Fresh Start initiatives, there is a six month grace period before these penalties on your IRS debt begin to kick in. According to the tax debt lawyer, this grace period allows taxpayers more leeway to get their payments in on time without accruing penalties that make it more difficult to pay the total amount due.

The grace period only applies to people who have had a drastic reduction in income over the tax year. Specifically, an individual must have been unemployed for 30 days or more in the calendar year, or had a 25% reduction in income. The Fresh Start Program also allows qualifying taxpayers to pay their IRS debt in installments. It is a versatile and useful new law for those facing IRS debt.

 

Stop Wage Garnishment with a Tax Debt Lawyer

August 21st

When you think of wage garnishment, chances are you imagine credit card debt and your lenders taking action to recuperate their money. But did you know that the IRS could employ that tactic as well? If you have IRS debt, wage garnishment can be one of the most difficult consequences. You’re already struggling between paychecks – now money is being involuntarily deducted to repay your IRS debt. So how can you stop wage garnishment? Fortunately, the IRS must follow wage garnishment guidelines, and a tax debt lawyer can help protect your rights.

How a Tax Debt Lawyer Protects You

To avoid the threat of wage garnishment from the IRS, it’s vital to remain proactive in handling your IRS debt. If you owe a significant amount of IRS debt but make an attempt to resolve the matter, chances are that the wage garnishment won’t be enforced – if you’ve made a good faith effort, the IRS will probably work with you. However, a lack of communication about your IRS debt could result in wage garnishment. Working with the IRS and making payments on your IRS debt are your best protectors.

If the IRS is already employing wage garnishment to deal with your IRS debt, working with a tax debt lawyer may be your only solution. To stop wage garnishment:

· Contact a tax debt lawyer. Consulting with a tax debt lawyer will help you deal with any complications surrounding your IRS debt. You’ll be surprised at all the options available, such as a lower settlement (or “offer in compromise”), an installment plan, or bankruptcy. While you might be focused on stopping wage garnishment, be sure to also use your tax debt lawyer to help you settle your IRS debt.

· Contact the IRS immediately. Creating an installment plan to repay your IRS debt is the quickest way that you can stop wage garnishment. However, you might not be able to make monthly payments on your IRS debt, which is why the IRS had to initiate wage garnishment in the first place. If this is the case, you’re in a financially precarious situation, and it’s vital to seek the counsel of a tax debt lawyer to protect your rights and settle your IRS debt.

 

How to Discuss Tax Debt with the IRS

June 5th

Just because tax season is over, it doesn’t mean that everyone’s tax problems are over. Each year, it’s estimated that a little over 1.1 percent of individual returns are audited by the IRS. Whether you’re facing an audit, want to discuss your situation, or are trying to pay back your tax debt, chances are you’re going to speak with an IRS agent at one point or another. Whether an IRS agent contacts you or you are somehow able to get through to the agency, here are some tips to consider when discussing your tax debt with the IRS.

Tips for Communicating with the IRS

If you’re working with a tax debt lawyer to settle your back taxes, then chances are that the process will move along smoothly. However, sometimes the IRS does contact individuals directly, especially when they’re performing an audit. Communicating effectively with the IRS is crucial to help solve your tax debt problems and prevent future complications. Basic etiquette for speaking with an IRS agent includes:

· Stop talking. Remember, you don’t have to tell the IRS agent everything. Yes, you want to be honest, but that doesn’t mean you have to go into detail. For instance, instead of defending your situation for 10 minutes, perhaps a simple ‘yes’ or ‘no’ answer would have sufficed. The more you say, the more issues you give to the IRS to pursue for review. Instead, discuss specifics with your tax debt lawyer and focus on taking notes when speaking with an IRS agent.
· Stay calm and be humble. Owing tax debt to the IRS can be strenuous and hurt your ego, but don’t let it show. Be humble and calm when dealing with an IRS agent on the phone. Remember, you want them on your side. If you end up making them mad, you could inadvertently make your tax debt situation harder to deal with.
· Don’t pay immediately. Sometimes the IRS makes mistakes as well when it comes to tax debt. Working with a tax debt lawyer can help you ensure that everything is accurate. Many times, taxpayers don’t actually owe anything. When speaking with an IRS agent, work to clarify the situation surrounding your tax debt.

 
 
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