Frequently Asked Questions
Taxpayers who owe federal taxes and/or who are in collections with the IRS need to take action to avoid the IRS garnishing wages, levying accounts and eventually seizing assets. My Fresh Start will educate taxpayers who owe federal taxes on their three choices (see FAQ #6), assist in their decision regarding choice and create a package for settlement. By purchasing My Fresh Start a customer will be able to either file the settlement package their self or significantly reduce the professional fees for representation by preparing the forms necessary to pursue one of the three choices.
My Fresh Start is a software program that will gather information, provide Insightful Comments based upon the taxpayer's facts and the IRS current standards for collections. Once the taxpayer chooses to pursue settlement of taxes and answers all applicable questions, then the program will complete the Package (as described in FAQ #3) necessary for the taxpayer to pursue settling the federal tax debt owed and freeze IRS collection activities on their own.
A series of questions will be asked for the taxpayer to answer, as applicable, which requests information about assets and liabilities, as well as monthly income and expenses. Once completed, My Fresh Start will provide Insightful Comments on each of the three choices that are possible and once a path has been chosen, then additional questions will be asked to complete a Package, which includes a cover letter addressed to appropriate IRS office; all forms with attachments required to pursue chosen path along with a detailed set of Instructions and checklists to ensure a complete Package. All attachments (i.e. bank statements, paystubs, receipts, etc.) that may apply to a Package must be provided by the taxpayer for filing.
No information regarding social security numbers, employer identification numbers or bank account numbers are collected. Taxpayers will fill in their personal information and provide all receipts and statements necessary to complete their Package before filing with the IRS (as described by the Instructions and checklist that will print as part of the Package).
When preparing a Package a Taxpayer should make every effort to provide all information requested. However, if the Taxpayer does not have the requested back up please be advised that the IRS may challenge the numbers, however before rejecting your application the IRS would first request the information that is missing. Thereafter, if the Taxpayer does not provide the receipts and statements needed to backup their numbers, the IRS will reject the application. If no back up provided, then National and Local standards would apply. It is possible to file a Package without any receipts and statements if National/Local standards were being relied upon.
The IRS publishes the following standards for establishing minimum monthly expense limits for taxpayers without receipts and statements:
- Food, Clothing and Other Items: per person national standards includes Food, Housekeeping Supplies, Apparel and Services, Personal Care Products and Services and Miscellaneous costs collectively starting at $585 as of 3/30/2015
- Out-of-Pocket Health Care Costs: per person national standard $60 for persons under 65 years old and $144 for persons over 65 years old as of 3/30/2015
- Housing and Utilities: per person local standard based upon county of residence
- Transportation: per person national and regional standards based upon one or two cars ranging from $600-$750 for one car as of 3/30/2015
My Fresh Start is a self-help tool where customers purchase a software license for a two (2) year term during which time the customer will be able to complete the settlement process.
There are 3 choices for a taxpayer who owes federal taxes:
- File for Currently Not Collectible status;
- Implement an Installment Agreement; or
- Apply for an Offer in Compromise.
Once the IRS has accepted an application for processing into either
- Currently Not Collectible status,
- an Installment Agreement; or
- an Offer in Compromise,
Timelines vary depending on a Taxpayer's chosen path. Some choices produce results upon filing with the IRS (i.e. no approval process) and others require IRS review and approval.
All federal taxes including, income taxes, excise taxes, employment taxes, etc.
The first step is for the IRS to assess a tax liability, which will either be as a result of a tax filing or an audit; then the second step is for the IRS to file a lien against all assets, which will also impact ability to receive and/or maintain a state license in several different professions (vary by state); thereafter, if the federal taxes owed still have not either paid in full or implemented one of the three paths identified above, then the IRS may issue a 30 Day letter in which the Taxpayer will be notified of the IRS intent to garnish wages and levy assets.
Once a Taxpayer has received a 30-Day letter titled as "Final Notice of Intent to Levy and Notice of your Right to a Hearing". At this point in the collection process, if the Taxpayer does not agree with the amount owed, an appeal procedure is required. Otherwise, the IRS has right to begin levy of the Taxpayer's assets, which includes garnishment of wages, after 30 days have passed from the date of the 30-Day letter.
Depending on response either:
- file an appeal,
- re-file offer in compromise with corrected offer amount; or
- choose another path.
Assist in preparation of packages for any of the three choices listed in FAQ #14
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