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Tax Debt

Do You Qualify For The IRS Fresh Start Initiative?

Do You Qualify For The IRS Fresh Start Initiative?

By on Jul 15, 2019 in Tax Debt | 0 comments

The IRS Fresh Start initiative expanded several programs to help taxpayers struggling with unpaid tax debt as a result of the 2008 worldwide financial crisis. Some changes included the IRS increasing the threshold for filing a notice of federal tax lien from $5,000 to $10,000. Also, taxpayers are now allowed to obtain a lien withdrawal once their balance is paid in full or under $25,000 plus they must agree to direct deposits from their checking account for their installment payments. This is an important change since having a lien can hurt a taxpayer’s ability to obtain loans, obtain credit, or sell a property. This is why it matters, but let’s go back and understand what it is. What Is The Fresh Start Initiative? First known as the Fresh Start Program, the Fresh Start Initiative is not actually a program. It was simply a series of changes to current IRS Collection procedures and policies as outlined above designed to help both individual taxpayers and small businesses attempting to settle an overdue tax liability. In theory, the Fresh Start Initiative has features that make it easier for taxpayers to pay back their outstanding balances and avoid tax liens, or have existing liens withdrawn. How Long Has The IRS Fresh Start Initiative Been In Place? The 2008 economic crisis led to record numbers of unemployed Americans. In 2011, the IRS implemented the first of several programs to assist struggling taxpayers and it underwent some growth back in 2012. Therefore these programs offer collection alternatives to help resolve tax debt. The two major tax debt payment plans that were simplified under the Fresh Start Initiative include the Installment Agreement and the Offer in Compromise program. Altogether, these alternative options are known as the Fresh Start Initiative. How To Qualify For IRS Fresh Start Program? To qualify for the IRS Fresh Start Program there isn’t one set of requirements – it depends on the tax relief program you choose. The following are the general requirements most tax relief applicants must meet. Be warned that just because you qualify for a tax relief program doesn’t mean you should apply for it. Sometimes tax relief programs can cause more harm than good because of the stipulations...

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IRS One Time Forgiveness: Does It Apply to You?

IRS One Time Forgiveness: Does It Apply to You?

By on Dec 26, 2018 in IRS, Tax Debt, Tax relief | 0 comments

Have you heard offers on TV or online promising to eliminate all of your tax debt? Have you wondered if these promises could be real or are they just too good to be true? In reality, while no formal debt forgiveness plan actually exists, you might actually qualify for significant assistance from the Internal Revenue Service (IRS) that can help you get a clean slate where your taxes are concerned. Success Tax Relief is a full-service tax firm that can help determine whether you meet these criteria. Here are some of the instances where taxpayers may be able to get out from under their tax debt for much less than they owe.   Can Your Tax Debt Be Forgiven   1. How old is the tax debt? If your tax debt is more than 10 years old and the IRS has not made attempts to collect, then the statute of limitations has passed and you will not have to pay your back taxes. That is correct—the IRS has up to 10 years to collect from taxpayers and if they exceed this timeframe, they are not legally allowed to collect.   2. Offer in Compromise The IRS understands that there are instances in which they will not be able to collect the full amount a taxpayer owes. If you have a low income or are experiencing a significant financial hardship, you may qualify for an offer in compromise, which allows you to settle your tax debt for less than what you actually owe. This does not preclude you from having to file; you still must file all required tax returns and also fill out the Offer in Compromise application, which will ask for documentation that proves that you are unable to pay the full amount due. The IRS publishes an entire booklet on the process, which we can help you better understand at Success Tax Relief. If your application is rejected for any reason there is an appeals process. A positive: an Offer in Compromise does not affect your credit history or score, so it is an avenue worth pursuing if you qualify. The recent IRS Fresh Start Initiative has made the application process easier for struggling taxpayers.   3. Non-collectible...

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What is a Tax Penalty Abatement?

What is a Tax Penalty Abatement?

By on Jul 18, 2018 in Tax Debt | 0 comments

You may have already looked to the Internal Revenue Services(IRS) website to try and find out what a tax penalty abatement is. Unless you’re a lawyer, it may take awhile to try and figure out what all of that information means. At Success Tax Relief, we understand that when it comes to money matters, you want answers fast and solutions even quicker! You don’t have time to try and figure out legal jargon, so here’s what a tax penalty abatement means… A tax penalty abatement is a waiver from any late filing or late payment penalty fees. It is a request that The Journal of Accountancy states is not requested enough. Many taxpayers fall into a serious amount of debt due to the penalty fees alone. What most people don’t know is your are penalized with a fee every day you are late with a tax filing and payment. If you’re late with a filing, you’re guaranteed to be late with the payment. One late day can be the difference between you paying your tax debt and needing to file some sort of extension. Filing an Extension   A lot of taxpayers know about filing an extension, but they may not know about filing for a tax penalty abatement. If you’re filing for an extension, then this filing should be the next order of business. However, not everyone qualifies for this waiver.   Here’s a quick little quiz to help you determine whether or not you qualify for a tax penalty abatement:   Has it been more than three years since you had a tax penalty? Did you neglect to take care of your tax responsibilities due to a natural disaster? Are you dealing with any serious illnesses? Have you had a death in the family? Did your tax advisor or an IRS representative give you wrong advice? Are you under financial hardship?  If you answered ‘yes’ to any of these questions, then you may very well qualify for a tax penalty abatement. Now that you know this, what’s the next step? You have two choices: Go forth and try and process this claim with the IRS by writing a letter, or hire an experienced tax relief representative who can take...

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How Can a Tax Problem Solver Reduce Your Debt?

How Can a Tax Problem Solver Reduce Your Debt?

By on Jul 4, 2018 in Tax Debt | 0 comments

A lot of taxpayers might want to take on the role of a tax problem solver in order to avoid paying the fees that a professional tax debt agency charge. Many times, the do-it-yourself tax problem solver aims at trying to keep their assets from getting seized or possibly delaying a payment. The goal of such a problem solver doesn’t always involve reducing the tax debt—just delaying the inevitable by pushing back the date with no real resolution.   Why Solving Your Own Tax Problem Isn’t Always a Good Idea   The problem with taxpayers who take on the role as their own tax problem solver is lack of experience and education in the field of tax law. While the Internal Revenue Service (IRS) will certainly provide the general public with information needed to push things through, they will not serve as an official education branch for all things tax-related. This is where many taxpayers who are in debt get frustrated because they are expecting IRS representatives to educate them about all of their tax options. Understanding How to Utilize the IRS   The IRS is a reputable source for getting all of the information and documents needed to file your taxes, extensions and other tax-related issues. However, they are not obligated to teach you about how the tax laws work and how you can make them work to your advantage. Expecting this kind of service from the IRS will result in a high amount of stress.     Oftentimes, the stress of tax debt can cause a taxpayer to not think things through clearly. Anxiety has proven to cause tension, restlessness, irritability, and sometimes even headaches. All of these side effects can compromise sound and logical thinking. This is something you don’t want when it comes to resolving a situation with the IRS. While it is quite possible to take care of your tax debt, it’s best to take the plunge and invest in a professional tax problem solver who knows the tax laws and has the experience to not only push back your deadline but also reduce the amount you owe. Success Tax Relief, Your Tax Problem Solver   Success Tax Relief has been in the business...

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How to Handle Partial Payment Installment Agreements

How to Handle Partial Payment Installment Agreements

By on Jun 20, 2018 in IRS, Tax Debt, Tax relief | 0 comments

Dealing with the Internal Revenue Service (IRS) for a tax debt issue is never an easy thing to manage. From the moment that you get that first letter informing you that you are under IRS investigation and facing an audit, your life is, to say the least, in a state of upheaval. Being presented with a tax bill of any amount can feel like a deathblow to your family’s dreams and financial health. The good news is that the IRS really isn’t all that bad. The IRS includes several measures that can help people just like you deal with a large and unexpected tax debt amount. One of those measures is the option of a partial payment installment agreement. How a Partial Payment Installment Agreement Can Help Your Tax Debt Situation   The Partial Payment Installment Agreement, or PPIA, is a method by which you can settle your tax debt to the IRS without the heavy burden of writing a check for the entire amount all at once. Just like a regular installment agreement, you are making payments to your tax debt over time in regular monthly payments, but with the PPIA you are only paying back a portion of your tax debt.   These types of installment agreements are much harder to get and there are very high criteria for those who can qualify. The PPIA is generally a second line option that is pursued after a rejected Offer in Compromise. Once your OIC has been turned down then you are eligible to apply for a PPIA. You must also meet the following criteria:   You owe at least $10,000 in total when taking into account debt, penalties, and interest. You can pay some of what you owe, but you cannot pay the full amount by the end of the term of the statue of limitations due to the fact that you do not have enough disposable monthly income available to you. Completed both Form 433 and Form 9465 or have applied for an installment agreement online. You have filed all of your past tax returns and are not in a state of bankruptcy. Have not had your OIC accepted by the IRS. You have no assets or you...

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Federal and State Tax Debt: How to Get Help Paying it Off

Federal and State Tax Debt: How to Get Help Paying it Off

By on Jun 6, 2018 in Tax Debt | 0 comments

As the old adage goes, there are only two certainties in life, death and taxes! While no one likes having to deal with filing and paying their taxes, they are a necessary evil that provides for the myriad of services and benefits we enjoy in modern society. Nonetheless, most Americans look forward to filing and paying their taxes about as much as they look most cases, it’s a simple process of filing their taxes every cycle, writing out a check and mailing it in, and being done with it. That’s how it’s supposed to go anyway.   Some Pitfalls You Might Find When Filing Taxes   There are those unfortunate few that find themselves going about their daily lives, and then the phone rings or they get an envelope in the mail, and are informed that they are being audited by the Internal Revenue Service (IRS) or by their state tax commission. This whole thing can be very confusing, frustrating, and time-consuming to process, but the good news is that you do not have to do this alone.   Help is a Phone Call Away   It is estimated that more than 18 million Americans currently owe a debt to the IRS and that more than 10 million Americans owe a debt to their individual state tax commissions. The law provides methods for you to take care of your tax debt quickly, easily, and for a significantly lower amount than what you have been told you owe. While this is something you can do on your own, the process will go much quicker with the assistance of a qualified tax debt relief agency. This is where Success Tax Relief can step in and help. Companies such as Success Tax Relief have experience dealing with the IRS. We know how to file disputes that get results, and how to request extensions that get granted. Success Tax Relief also knows how to take the best advantage of the wide range of programs offered in that can help you with getting your debt settled. Let’s look at two of these programs:   1. Installment Agreement    Your tax debt amount is cut into a series of installments that are payable at regular intervals over...

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