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Associated Press
14-04-2025
- Business
- Associated Press
Inside the Protection Tax Legitimate Intake Structure
Protection Tax's intake system ensures IRS compliance by verifying transcripts and financials, reducing client risk and preventing unsupported tax claims. LAS VEGAS, NV, UNITED STATES, April 14, 2025 / / -- The intake process at Protection Tax is designed to meet both legal requirements and professional ethics. Internally referred to as the Protection Tax legitimate intake system, this protocol ensures each case begins with a full review of the client's IRS transcript data. Before any tax resolution strategy is discussed, the firm conducts a comprehensive financial verification. This includes reviewing income sources, asset holdings, and outstanding liabilities to determine eligibility for programs such as Offer in Compromise or Currently Not Collectible status. This structured intake system is a safeguard against risk. By confirming financial facts before any representation is made to the IRS, Protection Tax helps prevent the submission of unsupported claims — a practice that can lead to delays, denials, or penalties. The legitimate intake system reflects the firm's commitment to transparency and lawful compliance. It also plays a key role in determining which resolution pathways are legally viable for each client. By anchoring each case in verified documentation, Protection Tax aligns its procedures with federal standards — reducing exposure for clients and enhancing long-term resolution success. Protection Tax LLC Protection Tax email us here Legal Disclaimer: EIN Presswire provides this news content 'as is' without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
CBS News
31-03-2025
- Business
- CBS News
How to settle tax debt in 2025
It isn't always easy to pay off what's owed to the Internal Revenue Service (IRS), especially as interest and penalties begin to accumulate on your tax debt . The IRS penalties on unpaid tax debt can be as high as 5% per month (up to 25% in total), after all, so it doesn't take a lot of time, or a massive balance, for what could have been a manageable debt to turn into one that you simply cannot afford to pay out of pocket. Still, millions of Americans find themselves in this difficult position each year, and not all of them understand the options available to them. The good news is, though, that the IRS does offer help, including programs designed to help taxpayers settle their tax debt for less than the full balance. These options have evolved in recent years, and in certain cases, there are new provisions that may make resolution more accessible than in previous years. That's an advantage for those who are trying to resolve their tax debts now. But understanding these programs and how to qualify for them is a crucial part of finding the right option for your financial situation. So, if you're unable to afford your tax bill and need to settle it, it's critical to know how you can do that in 2025. Find out how to start settling your IRS tax debt today . There are a few different strategies you can use to try and settle your IRS tax debt, including: The Offer in Compromise program allows qualifying taxpayers to settle their tax debt for less than the full amount owed. This option has become more accessible in 2025, with the IRS adopting more flexible evaluation standards. To qualify , you must demonstrate one of three conditions: The IRS evaluates your ability to pay based on assets, income, expenses and future earning potential. In 2025, they've adjusted their calculation formulas to account for increased living expenses, potentially making more taxpayers eligible for significant reductions in their tax debt. Begin by using the IRS's Offer in Compromise Pre-Qualifier tool on their website to determine eligibility. If you qualify, submit Form 656 (Offer in Compromise) along with Form 433-A (Collection Information Statement) and the application fee (which may be waived for low-income taxpayers). Speak to a tax relief specialist about your options now . If paying your tax debt would prevent you from meeting basic living expenses, you can request to have your account placed in Currently Not Collectible (CNC) status . While not a permanent solution, this temporary hardship status pauses collection efforts. To request CNC status, contact the IRS and be prepared to complete Form 433-F (Collection Information Statement). You'll need to provide detailed financial information showing your inability to pay while maintaining necessary living expenses. The IRS may review your financial situation periodically to determine if your ability to pay has improved. Interest and penalties continue to accrue during CNC status, but collection actions like levies and garnishments are suspended. The IRS's First-Time Penalty Abatement policy can provide relief from failure-to-file, failure-to-pay and failure-to-deposit penalties for a single tax period if you have a clean compliance history for the three years prior. So, pursuing this type of relief can effectively "settle" what you owe for less by removing these types of penalties from the total tax debt tally. The IRS also expanded its reasonable cause criteria this year, so you may qualify if you can demonstrate that you failed to meet your tax obligations despite exercising ordinary business care and prudence. Common reasonable causes include serious illness, death in the family, natural disasters or unavoidable absence. You can request penalty abatement by calling the IRS directly or by submitting Form 843 (Claim for Refund and Request for Abatement). Just be prepared to provide documentation supporting your reasonable cause claim. While not specifically an IRS program, filing for bankruptcy can discharge certain tax debts in some situations. Generally, income tax debt may be dischargeable if: Bankruptcy should typically be considered a last resort after exploring other options, though, and it's important to consult with a bankruptcy attorney specializing in tax issues before pursuing this route. There are numerous flexible options for settling your tax debt in 2025, but the key to success is taking prompt action when you find out you owe money to the IRS. The longer you wait, the more your tax debt grows through penalties and interest — and the fewer options you may have available. Remember that the IRS generally wants to work with taxpayers to resolve debt issues. The agency typically prefers to collect partial payment through an agreement rather than spending resources on aggressive collection actions. So, by understanding your options and taking a few proactive steps, you may be able to find a path toward resolving your tax debt for less.
Associated Press
21-02-2025
- Business
- Associated Press
Clear Start Tax Explains How to Qualify for the IRS Fresh Start Program in 2025
Helping Taxpayers Navigate IRS Tax Debt Relief IRVINE, CALIFORNIA / ACCESS Newswire / February 21, 2025 / As tax season approaches, millions of Americans struggling with IRS debt are looking for solutions to regain financial stability. Clear Start Tax, a trusted leader in tax resolution services, is shedding light on how taxpayers can qualify for the IRS Fresh Start Program in 2025 and take advantage of its benefits. The IRS Fresh Start Program was created to help individuals and businesses burdened by tax debt find manageable solutions, including lower monthly payments, penalty relief, and even tax debt reduction through an Offer in Compromise (OIC). However, many taxpayers are unaware of how to qualify or navigate the application process. 'The IRS Fresh Start Program can be life-changing, but most people don't know where to start,' said the Head of Client Solutions at Clear Start Tax. 'Our goal is to educate taxpayers on their options and help them take the right steps to achieve financial relief.' Who Qualifies for the IRS Fresh Start Program? To qualify for the IRS Fresh Start Program, taxpayers must meet specific eligibility criteria, which vary depending on the relief option pursued. Clear Start Tax outlines the key requirements: Offer in Compromise (OIC) - Taxpayers may qualify to settle their tax debt for less than they owe if they can prove financial hardship and an inability to pay the full amount. Installment Agreements - Those who owe up to $50,000 may be eligible for extended payment plans that allow them to pay their debt over time without facing aggressive IRS collections. Penalty Abatement - Taxpayers who can demonstrate reasonable cause for not paying their taxes on time may qualify for penalty relief. Currently Not Collectible (CNC) Status - If a taxpayer's income is too low to cover basic living expenses, the IRS may temporarily halt collection efforts. Common Mistakes That Can Jeopardize Your Fresh Start Eligibility Many taxpayers unknowingly disqualify themselves from relief due to avoidable mistakes. Clear Start Tax highlights common pitfalls, including: Failing to File Tax Returns - The IRS will not grant relief to individuals who have unfiled tax returns. Ignoring IRS Notices - Delaying action on IRS debt increases penalties and makes negotiations more difficult. Underreporting Income - Providing inaccurate financial disclosures can lead to rejected applications. Waiting Too Long to Seek Help - The IRS can take aggressive collection actions, such as wage garnishments and bank levies, if debt remains unresolved. 'We've seen too many cases where taxpayers miss out on relief simply because they don't understand the process,' said the Head of Client Solutions at Clear Start Tax. 'That's why we encourage people to act early and work with professionals who can guide them through the process.' Clear Start Tax: Your Trusted Partner for IRS Tax Debt Resolution With a team of experienced tax professionals, Clear Start Tax has helped thousands of taxpayers successfully navigate the IRS Fresh Start Program. From negotiating settlements to securing affordable payment plans, the firm provides personalized solutions to ensure clients achieve the best possible outcome. 'Our goal is to provide taxpayers with a clear path forward,' added the Head of Client Solutions at Clear Start Tax. 'We take pride in helping our clients regain control of their finances and move forward with confidence.' Take the First Step Toward Tax Debt Relief If you owe back taxes and need relief, now is the time to take action. Clear Start Tax offers free consultations to help individuals determine their eligibility for the IRS Fresh Start Program. Need Help With Back Taxes? 🔗 Clear Start Tax is a full-service tax liability resolution firm that serves taxpayers across the United States. The company specializes in IRS and state tax issues, including back taxes, wage garnishment relief, IRS appeals, and Offer in Compromise negotiations. Fully accredited and A+ rated by the Better Business Bureau, Clear Start Tax is recognized as an industry leader in tax resolution, offering tailored solutions that provide real financial relief.
CBS News
06-02-2025
- Business
- CBS News
Everything to know about the IRS Fresh Start program
If you owe money to the Internal Revenue Service (IRS) but can't afford to pay it off immediately, that delinquent tax debt can end up having a big impact on your financial health. After all, the IRS has lots of tools at its disposal to recoup the money owed, and over time, you may find yourself facing big penalties as your tax debt accumulates interest — including things like wage garnishments or tax liens. If that happens, it could be a significant hit to your financial well-being. What may surprise you, though, is that while the IRS has lots of power to collect tax debt, it also recognizes that unexpected financial hardships can make it difficult to pay your taxes in full, which is why the IRS' Fresh Start program was created. This initiative, which has undergone several expansions since its 2011 launch, helps taxpayers manage their tax debt through more flexible payment options and penalty relief. While the Fresh Start program won't offer a solution for every taxpayer, it provides several pathways to address tax debt. Understanding these options, how they work and who qualifies may be the first step toward resolving your tax issues. Need help with your back taxes? Chat with a tax relief specialist now. Here's everything you should know about this IRS tax relief program: What is the IRS Fresh Start program? The IRS Fresh Start program is a tax relief initiative designed to help both individuals and businesses pay back taxes and avoid tax liens. This initiative is not a single program but rather a collection of provisions that make it easier for taxpayers to settle their tax debt. These provisions include installment agreements, offers in compromise and tax lien relief options. Find out what tax relief strategies are available to you today. How does the Fresh Start program work? Here's how each provision under the Fresh Start program works: Installment agreements: The Fresh Start program's cornerstone is the expanded installment agreement option. Taxpayers who owe up to $50,000 can set up long-term payment plans lasting up to 72 months. This is a significant increase from previous limits and also comes with a streamlined approval process. The IRS has also reduced the financial documentation required for these agreements, making it easier for taxpayers to qualify. Offer in Compromise: The Offer in Compromise (OIC) option allows taxpayers to settle their tax debt for less than the full amount owed. Under Fresh Start, the IRS made OIC more accessible by introducing more flexible terms and a streamlined application process. As part of those changes, the program now considers your current income and assets rather than future earning potential when evaluating your ability to pay. Tax lien relief: The Fresh Start program has also made significant changes to how the IRS handles tax liens. The program increased the tax debt threshold for filing a lien from $5,000 to $10,000, meaning fewer taxpayers face liens on their credit reports. The IRS has also made it easier to get liens withdrawn after paying tax debt or setting up a direct debit installment agreement. How do you qualify for the Fresh Start program? Eligibility for Fresh Start benefits depends on several factors. For individuals, you must: Owe less than $50,000 for installment agreements Be current with all tax return filings Not be in an active bankruptcy proceeding Have filed all required tax returns Who does not qualify for the Fresh Start program? Several factors can disqualify taxpayers from participating in the Fresh Start program. The taxpayers who may not qualify for this program include: Individuals who haven't filed all required tax returns or are not current with estimated tax payments Those currently involved in an open bankruptcy proceeding Self-employed individuals who haven't made all required estimated tax payments for the current year Taxpayers who can pay their tax debt in full through liquidating assets or taking out a loan Those who have rejected previous installment agreements or failed to comply with past agreements Those with an active OIC investigation Taxpayers involved in criminal tax cases How to apply for the IRS Fresh Start program The application process varies depending on which Fresh Start option you're pursuing. Here's how to apply for each option: For installment agreements Complete Form 9465 Provide detailed financial information using Form 433-F Submit all required documentation, including proof of income and expenses, and pay the setup fee For Offer in Compromise Complete Form 656 Fill out Form 433-A (for individuals) Submit the application fee Provide comprehensive financial documentation Continue making estimated tax payments while your offer is reviewed For tax lien withdrawal Request withdrawal using Form 12277 Ensure all tax returns are filed Set up a direct debit installment agreement (if required) Maintain compliance with all payment terms The bottom line The IRS Fresh Start program can be a great opportunity for taxpayers struggling with tax debt to find relief and regain their financial stability. While it won't result in complete forgiveness of your tax debt, it provides realistic options for managing tax debt through more favorable terms and flexible payment arrangements. That, in turn, can put you on a path toward resolving your outstanding tax debt, making it a lot easier (and a lot less stressful) to manage your finances.
CBS News
29-01-2025
- Business
- CBS News
4 ways a tax relief service can reduce your tax bill
Tax season can be stressful enough on its own, but when you're facing a hefty tax bill or are still dealing with delinquent tax debt from years prior, it can feel downright overwhelming. After all, the Internal Revenue Service (IRS) isn't exactly known for its leniency, and tax debt can quickly become overwhelming if left unaddressed. So, whether you've fallen behind on payments, received an unexpected assessment or are struggling with years of accumulated tax debt, you might be wondering if there's any way to lighten the load. The good news is that there may be ways to do that. What many people don't realize is that the tax code includes various provisions for reducing tax debt. The challenge is knowing how to navigate these complex regulations and successfully negotiate with the IRS — which is something that most taxpayers aren't equipped to handle on their own. That's where tax relief services come into play. These specialized firms employ experienced tax specialists and enrolled agents who understand the nuances of tax law and have experience negotiating with the IRS on behalf of taxpayers. While they can't make your tax debt disappear entirely, they can often help reduce what you owe through several legitimate methods. Chat with a tax relief expert about your options today. 4 ways a tax relief service can reduce your tax bill If you're looking for ways to reduce your tax debt, here are a few ways a tax relief service can help: Offer in Compromise (OIC) negotiations One of the most powerful tools in a tax relief service's arsenal is the ability to negotiate an Offer in Compromise with the IRS. An Offer in Compromise is a way to settle your tax debt for less than what you owe, but the IRS only approves OICs if they believe you genuinely can't pay the full amount, either in a lump sum or through installments — so a tax relief service can be invaluable during this process. A tax relief service can assess your financial situation, prepare a strong case and negotiate with the IRS on your behalf. They'll ensure that your offer meets the IRS's criteria, improving your chances of acceptance. If successful, an OIC can significantly reduce your tax burden and allow you to move forward without the constant stress of looming debt. Find out how to settle your IRS tax debt here. Penalty abatement assistance One of the biggest frustrations people have with their tax debt is the accumulation of penalties and interest. The IRS penalties can add up to 25% or more of the original tax debt, so even a relatively small initial debt can balloon into a much larger amount due to late fees and compounding interest. Tax relief services can help you request penalty abatement, though, which is the removal of these additional charges, if you have reasonable cause for not meeting your tax obligations. The servicers know how to document and present circumstances like financial hardship, medical emergencies or incorrect tax advice from tax professionals in a way that resonates with IRS reviewers. A successful penalty abatement can save you thousands of dollars, even if you still need to pay the original tax amount. Installment agreement optimization If paying off your tax debt in full isn't feasible, an installment agreement can break it down into manageable monthly payments. The IRS offers different types of payment plans, but qualifying for the best terms can be tricky, as can finding one that truly works for your financial situation. Tax relief professionals know the ins and outs of these agreements and can negotiate lower monthly payments or extended timelines to help ease your financial strain. More importantly, they know how to advocate for lower monthly payments by properly documenting your financial hardship and using the IRS Fresh Start initiative provisions that you might not know about. And, with a well-structured plan in place, you can avoid harsh penalties while gradually paying off what you owe. Strategic tax return review and amendment In certain cases, reducing your tax bill starts with correcting past mistakes. Tax relief services can help with this by thoroughly reviewing your previous returns to identify potential errors or missed deductions that could be working against you. If they find legitimate opportunities to reduce your tax liability, they can help you file amended returns and even secure a refund. This process requires extensive knowledge of tax law and documentation requirements, though — which is precisely the type of expertise that tax relief professionals have developed through years of experience. The bottom line Working with a tax relief service isn't a magic solution to make all your tax problems disappear overnight. However, these professionals can provide valuable expertise and representation that most taxpayers simply don't have access to on their own. They understand the complex web of tax regulations, relief programs and negotiation strategies that can lead to meaningful reductions in your tax debt. Before hiring a tax relief service, just make sure to do your due diligence. Look for firms with a strong track record, positive client reviews and transparent pricing. Be wary of companies that make unrealistic promises about eliminating all your tax debt or guarantee specific results. Ultimately, the most reputable tax relief services will be upfront about what they can and cannot do for your specific situation.
