Following the COVID-19 outbreak, many United States households have been struggling to make ends meet, let alone pay their federal taxes.
Several countries offer the option for tax relief to certain taxpayers who owe money to the taxman, but there are US citizens who are still unsure whether they are given a similar option by the Internal Revenue Service (IRS).
Does the IRS have a Fresh Start program?
The answer is yes, as the US Federal Government introduced back in 2011 the Fresh Start Initiative in their bid to provide a financial boost to eligible American taxpayers who have current tax debt.
“Now, to help a greater number of taxpayers, the IRS has expanded the program by adopting more flexible Offer-in-Compromise (OIC) terms,” an IRS official press release explains.
“This expansion will enable some of the most financially distressed taxpayers to clear up their tax problems, possibly more quickly than in the past.
“An OIC is an agreement between a taxpayer and the IRS that settles the taxpayer’s tax liabilities for less than the full amount owed.
“Generally, the IRS does not accept an OIC if they believe the liability can be paid in full as a lump sum or through a payment agreement.
“The IRS looks at the taxpayer’s income and assets to make a determination of the taxpayer’s reasonable collection potential. OICs are subject to acceptance on legal requirements.”
How does Fresh Start work?
In the event that a taxpayer who…
