Tax Relief Blog
Professional tax help for individuals and small businesses struggling to meet their tax obligations. Call 877-788-2937 for a free confidential consultation.
On February 24, 2011, the Internal Revenue Service Commissioner announced an initiative to help people get a fresh start with their tax liabilities. The initiative centers on changes to IRS collection practices that will lessen the negative impact on taxpayers.
The changes include:
• Adjustments to IRS Lien Policies
o Significantly increasing the dollar threshold when liens are generally issued, resulting in fewer tax liens
o Making it easier for taxpayers to obtain lien withdrawals after paying a tax bill
o Withdrawing liens in most cases where a taxpayer enters into a Direct Debit Installment Agreement
• Creating easier access to Installment Agreements for more struggling small businesses
• Expanding the streamlined Offer in Compromise program to cover more taxpayers
Lien withdrawal after entering into a Direct Debit installment agreement
If you are a qualifying taxpayer and meet the eligibility requirements, you may have your lien withdrawn after entering into a Direct Debit installment agreement. Your request for lien withdrawal must be in writing. Please use Form 12277, Application for Withdrawal. In item 8, “Reason for requesting withdrawal,” check box b, the “entered into an installment agreement” provision.
Qualifying taxpayers are:
• Individuals (Form 1040 tax)
• Businesses with income tax liability only
• Out of business entities with any type of tax debt
Eligibility Requirements are:
• The current amount you owe must be $25,000 or less
• If you owe more than $25,000, you may pay down the balance to $25,000 prior to requesting the lien withdrawal to be eligible
• Your Direct Debit Installment Agreement must full pay the amount you owe within 60 months or before the Collection Statute expires, whichever is earlier
• You must be in full compliance with other filing and payment requirements
• You must have made three consecutive direct debit payments
• You cannot have previously received a lien withdrawal for the same taxes unless the withdrawal was for an improper filing of the lien
• You cannot have defaulted on your current, or any previous, direct debit installment agreement
If are currently on a regular installment agreement, you may convert to a Direct Debit Installment Agreement. Call our office at 877-788-2937.
In-Business Trust Fund Express Installment Agreements
Small businesses who currently have employees can qualify for an In-Business Trust Fund Express Installment Agreement (IBTF-Express IA). These installment agreements generally do not require a financial statement or financial verification as part of the application process.
The criteria to qualify for an IBTF-Express IA are:
• You owe $25,000 or less at the time the agreement is established. If you owe more than $25,000, you may pay down the liability before entering into the agreement in order to qualify.
• The debt must be full paid within 24-months or prior to the Collection Statute Expiration Date (CSED), whichever is earlier.
• You must enroll in a Direct Debit installment agreement (DDIA) if the amount you owe is between $10,000 and $25,000.
• You must be compliant with all filing and payment requirements.
To Request an In-Business Trust Fund Express Installment Agreement call our office at 877-788-2937
Fresh Start Streamlined Offer in Compromise Program
The expanded Streamlined Offer in Compromise program includes:
• Fewer requests for additional financial information
• If necessary, requests for additional information by phone, not by mail
• Greater flexibility when considering your ability to pay
Qualifying taxpayers are:
• Wage earners
• The unemployed
• Self-Employed taxpayers with no employees and gross receipts under $500,000
Eligibility requirements are:
• Your total household income is $100,000 or less, and
• The amount you owe is less than $50,000 when your offer is filed
We offer fresh start tax resolution and tax relief services in all 50 states. We are A+ rated by the better business bureau and can resolve your tax problem today. Call Mike Habib, EA at 877-788-2937 to discuss your particular tax situation.
