Taxpayers Flock to Fresh Start Program to Resolve Outstanding Federal Tax Liabilities – Los Angeles Income Tax Planning and Income Tax Litigation Attorney Bruce Givner

by Bruce Givner on April 11, 2013

Taxpayers are flocking to the Internal Revenue Service's (IRS) new "Fresh Start Program" to resolve their outstanding federal income and payroll taxes as taxpayers, whose installment agreement or Offer in Compromise (OIC) were not previously accepted by the IRS, now may qualify.

Under the “Fresh Start Program,” the following changes are available to taxpayers who apply for an installment agreement:

1. A taxpayer’s can still qualify if his or her outstanding tax liability is up to $50 thousand, an increase from $25 thousand.

2. The payoff term is raised from 60 to 72 months.

3. Taxpayers who qualify for a streamlined installment agreement need no longer submit a financial disclosure to the IRS.

4. Businesses that qualify for the In-Business Trust Fund Express Installment Agreement also need not provide a financial statement.

With the current OIC Program, if the IRS deems a taxpayer's income, expenses, assets and liabilities enough to pay a higher settlement amount, the taxpayer’s offer will be rejected. The “Fresh Start Program” expands the Allowable Living Expense Category to include additional expenses, such as credit card payments and bank fees, while increasing the total amount allowable. It also allows expenses to include the repayment of student loans and delinquent state and local taxes. Moreover, the “Fresh Start Program” now only considers one year of future income for offers that will be paid in full within five months when previously they considered four years of income.

Givner & Kaye focuses on sophisticated income tax planning and compliance, tax litigation and procedure, estate planning, and asset protection plans for individuals and businesses in Beverly Hills, Calabasas, West Los Angeles, Hollywood, and other areas of Los Angeles, Orange, Ventura, San Bernardino, Riverside and Santa Barbara Counties. Call Los Angeles Estate Planning and Asset Protection Plan Attorneys Givner & Kaye at (310) 207-8008 today.

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