The IRS Fresh Start program primarily aims to provide tax relief to taxpayers in the United States. This program has several benefits associated with it. Getting the necessary relief from paying huge taxes as a small business owner can be truly burdensome and can eventually become a financial nightmare.
In order to avoid facing a financial crisis as a matter of generating low income and having to pay significant tax amounts to successfully run your small business, this program initiative acts as a true boon for all small business owners and start-up founders.
By relieving your stress regarding tax payments by providing you with a sense of financial security, this program operates and functions in a customized format based on the individual profiles of different businesses.
A Brief Overview About the IRS Fresh Start Program Initiative
The IRS Fresh Start programs are tax initiatives that are implemented to provide significant relief from tax payments, especially for small-scale business owners who are relatively newer in the industry and might perceive tax payments as stressful and anxiety-driven. With limited staff in the organization, minimal funds in the business accounts and limited resources for development, small-scale business owners generally fail to comply with the taxation guidelines and might acquire humongous debt amounts and tax penalties.
By easing such potential problems, this initiative works to improve the existing monetary conditions of small-scale businesses by formulating their tax payments into flexible instalments and breaking down their overall expenses to manage funds for taxation. Several other aspects of tax relief such as compromise offers, penalty reliefs and fresh start instalment agreements are included under the given initiative.
How the IRS Fresh Start Program is Linked to Small Scale Business Owners
The IRS Fresh Start Program aims to primarily release the ongoing burden of paying tax amounts in a single attempt. Small-scale business owners who have just initiated their professional journey in the business sector and are making their space as an organization/brand in the marketplace benefit highly from such customized tax-relief initiatives. These initiatives are aimed at simplifying tax payments and destigmatizing them for small businesses. There are several advantages to being associated with this program.
Let us understand some significant features of this initiative to assess its implications on small-scale businesses.
- This initiative helps formulate reforms in various tax-related concerns that a small-scale business owner faces. These issues could range from tax penalties, bank levies, back taxes, tax returns that are unfiled, audit-related defences as well and wage garnishment.
- By offering intense relief from tax penalties and financial debts, this program is a life-saver for businesses struggling to generate revenue during their settling period in the marketplace.
- As a small business owner, you can rest assured regarding the fact that your ideas shall eventually thrive in the market with aid such as tax relief and tax penalty relief provided under this program.
- Each business has differing ideologies, work profiles, company size, performance profiles, working environments as well and nature of work. By understanding the importance of this diversity in the business sector, this program assists in tax payment by curating customized and tailor-made tax relief profiles for different small-scale businesses.
- By providing top perks that include extended payment terms that permit the taxpayer to clear the incurring tax debt in short instalments over a stipulated period of time, thereby reducing the stress regarding tax payment upon nearing the filing deadline.
- By offering tax penalty relief, small businesses can thrive in the market as a matter of getting relief from tax penalties that might involve intense amounts.
- By eliminating increasing tax payments in a single attempt, this program offers the flexibility to small business owners to clear the entire tax amount in easy monthly instalments that are split across a few months in minor amounts.
- These programs also recommend small-scale businesses settle their tax debts by providing a suitable offer under a compromise that involves clearing the tax due with a lower amount than the original pending amount.
- This program also includes an initiative of a fresh start that helps in improving the overall credit score of the organization, post the clearance of pending tax debts.
- By successfully clearing and resolving all pending tax debts, this program helps rebuild a clean image of a small-scale business by helping the owner withdraw from the tax lien thereby positively impacting credit scores.
Which Small Scale Businesses Are Considered Eligible for IRS Fresh Start Programs?
There is a specific eligibility criteria for the IRS Fresh Start Program. Most small-scale businesses are considered eligible for this program, given that they fulfil some of its requirements. These eligibility requirements are as follows:
- Small-scale businesses that are open to paying their tax debts under fixed instalments operate across a stipulated period of time, generally over a few months.
- Only those businesses can register for this program who have never come under the list of defaulters previously under the IRS Tax payments database.
- Businesses must strictly abide by the instalment agreements.
- The existing financial debt must be under $ 50,000 and the business owner must possess the capability to repay major parts of the debt.
- Businesses must keep their existing tax filing updated.
- Businesses must have the capacity to repay the incurring debt within a period of the next 5 years.
- Should agree to pay according to the direct payment structure.
There are differing eligibility requirements for small-scale business owners willing to register for this program. These are as follows:
- They must be owing financial debt that amounts to less than $ 25,000 and are willing to repay it within a period of 2 years and 10 months
- Should never have any previously failed IRS tax payments
- Their existing federal employment tax filing should be fresh and updated
Conclusion
Repaying and clearing tax payments for small-scale business owners can become a cumbersome task over time, especially when the business has simply begun making its place in the industry and has a long way to go in establishing its brand value and building a positive image.
Under such circumstances, the IRS Fresh Start Program acts as a catalyst to boost the overall credit score of a small-scale business by resolving its existing tax debts, it also helps in offering compromise requests to the IRS board and settling the due with lesser amounts.
In addition, these programs are customized according to the individual problems arising in the business including arranging flexible instalments for tax debts and requesting waivers for tax-based penalties.
