The IRS has recently adjusted its “Fresh Start” program after realizing that distressed taxpayers were still struggling to pay their taxes. Specifically, the IRS has taken steps to provide new penalty relief to the unemployed, a more relaxed installment agreement policy and much more flexibility with the financial guidelines used in determining approval for an Offer in Compromise.

Penalty Relief

The “Fresh Start” Penalty Relief program gives eligible taxpayers the ability to receive a six month extension to fully pay their 2011 taxes.

Installment Agreements

The IRS is providing payment options which will allow taxpayers, who cannot afford to pay their entire tax bill on time, to pay in installments-giving them the needed time to catch up on back taxes.

Offer in Compromise

The new “Fresh Start” provisions also means that the details regarding an Offer in Compromise, or an agreement between a taxpayer and the IRS that settles the taxpayer’s liabilities for less the initial amount owed, will be more realistic and feasible for the taxpayer.

With this new initiative, the IRS looks to cover and successfully help a wider spectrum of struggling taxpayers take a positive step towards eliminating back tax issues.

Still, the qualifications and other details of the program remain difficult for most to understand. In rare cases some attempt to work with the IRS directly; however it makes much more sense to seek the help of tax resolution services. When facing the burden of looming debt, the last thing you need is a deeper hole.

If you have any questions and owe $10,000 or more in back taxes to the IRS, call 877-829-3535 and let the seasoned attorneys at US Tax Shield help you successfully settle back tax issues with the IRS.