As of September 5 2014, the IRS announced a new policy called the IRS Fresh Start Initiative. This objective of this new initiative is to help individuals who are struggling to file their back tax returns. By implementing this new policy, the goal is to help people come forward and avoid a number of criminal tax charges, various penalties from the IRS, and settle their taxes for a portion of the amount owed.
The Fresh Start Initiative also makes easier than ever for small businesses to pay back takes and avoid tax liens. The new initiative changes a number of current IRS collection practices especially in the area of IRS settlement, including:
- Increasing the IRS Notice of Federal Tax Lien filing threshold from $5,000 to $10,000.
- Notices can still be filed for amounts less than $10,000 following certain guidelines and circumstances.
The IRS has also incorporated a streamlined offer in compromise process, offering a greater flexibility for both the tax payers and financial analyst.
Some of the changes include:
- Requesting critical information by phone rather than through the mail
- Less financial information needed to complete the process
- Flexibility for one’s ability to pay back taxes
Taxes can be a difficult problem for all parties involved, if you have any questions about Tax Audits, Tax collections, or Tax Liens contact the Law office of Bruce Gage at 978-961-0093.