IRS Fresh Start Program

San Diego IRS Audit and Collection Attorneys

If you owe back taxes to the IRS for business or personal reasons, Allen Barron is prepared to help. The IRS “Fresh Start Program” was recently established to assist taxpayers with significant back tax debt.  The IRS Fresh Start Program has three basic elements:

  • Removal of Tax Liens
  • Installment Agreements
  • Offers in Compromise

The Fresh Start Program is designed to help US taxpayers develop a process for repaying past due taxes, while potentially avoiding tax liens and collection efforts. Presently, if the taxpayer or business owes less than $10,000, the IRS may agree not to place a lien against real property, collections or business assets.  The IRS reserves the right, however, to put a lien against property even when the balance is below $10,000, especially if the collection of taxes appears to be “at risk.”  It is important not to ignore the problem, and to work with the tax attorneys at Allen Barron to resolve tax collection liabilities and recover control of your financial life.

IRS Tax Liens

The IRS Fresh Start Program is designed to reduce the application of liens, and to provide a process for the “withdrawal” of an IRS “Notice of Federal Tax Lien.” Allen Barron manages all communication with the IRS on your behalf, and when certain requirements are met we can work to have the lien withdrawn, improving your credit rating and restoring control over affected assets.

Some programs require electronic payments through an installment agreement, and the failure to complete the program or the interruption of payments can result in the filing of a new “Notice of Federal Tax Lien” by the IRS, and a resumption of tax collection efforts.

Installment Agreements

US taxpayers who approach the IRS on their own are confronted with a worksheet that calculates the amount “available” to be collected by the IRS – either in lump sum or through garnishment of accounts, income or payroll – and this is based upon a nationalized model of the “cost of living.” Unfortunately, this model does not take into account the increased costs associated with living in California and the greater San Diego area, and many who attempt to manage this process are faced with a “budget” they cannot afford.

The attorneys at Allen Barron are able to work directly with IRS revenue officers and other agents of the IRS to negotiate a solution that resolves your tax debt without forcing you to move or leave the area. We can help to prevent wage garnishment or bank levies.  It may be possible to negotiate payments over a term of up to seven years (3 years for business clients).  Our attorneys are often able to accomplish a much better result without the need to provide extensive financial information.

Offers in Compromise

Many advertisements on TV and the radio make it seem that it is easy to negotiate resolutions for “pennies on the dollar.” The reality of an Offer in Compromise is much different.  The program was established to allow qualified taxpayers to settle back tax debt for less than the entire balance owed (including penalties and interest).  The IRS will exhaust all possibilities to collect taxes that are owed, and Offers in Compromise are an effective tool when there are no assets on hand to meet the debt, and little reason to expect substantial change within a reasonable period of time.

The IRS Fresh Start Program provides a bit more flexibility for Allen Barron’s tax attorneys to negotiate settlements with the IRS and to develop an “Offer in Compromise” that is better than the standard calculation provided by the IRS website, allowing our clients to move forward with their lives.

If You Owe the IRS Back Taxes the Tax Attorneys at Allen Barron Can Help

There is hope for US taxpayers who are unable to pay their tax debt to the IRS in full, and the IRS Fresh Start Program is a solid option. Ignoring the problem will only make matters worse, and the IRS becomes less flexible with taxpayers who are unwilling to attempt to solve delinquent accounts.  We invite you to contact us by calling for a free consultation at 866-631-3470.  There is light at the end of the tunnel, and a road through these challenges that will put you back in financial control of your life.