The IRS Fresh Start Program offers various options to settle tax debts, such as Offer in Compromise and Installment Agreement, but the amount settled depends on the amount of tax owed, financial situation, and ability to pay according to TaxRise website.
Offer in Compromise
The Offer in Compromise allows taxpayers to settle their tax debts for less than the full amount owed if they demonstrate financial hardship. It requires a detailed financial analysis and negotiation with the IRS. The amount that the IRS will settle for under this option varies depending on individual circumstances.
The Offer in Compromise allows taxpayers to settle their tax debts for an agreed-upon amount, which can be paid in a lump sum or over time. The IRS will consider the taxpayer’s ability to pay, asset value, and likelihood of collecting the full amount owed through other means.
Taxpayers should consider their financial situation and consult with a tax professional to determine the best option for settling their tax debts. The IRS Fresh Start Program offers several options, including the Offer in Agreement, to help taxpayers resolve their tax issues and move forward financially.
The Installment Agreement is a payment plan option that allows taxpayers to pay off their tax debts over time in monthly installments based on the report of Congresswoman Pingree. It is more flexible than the Offer in Compromise and can be applied for online, by phone, or by mail. There are several types of installment agreements available depending on the amount owed and financial situation.
Taxpayers should carefully review the terms of the Installment Agreement before agreeing to any payment plan and consult with a tax professional to determine the best course of action.