Getting on the wrong side of the Internal Revenue Service is something most everyone wishes to avoid. The consequences of falling behind on tax obligations can be quite severe and may include collection methods such as tax liens, levies, garnishments and even criminal sanctions.

Fortunately, the IRS has put in place a Fresh Start initiative designed to help individuals and small businesses get caught up on back taxes, steer clear of harsh enforcement mechanisms and achieve full compliance with the law. A Maryland tax lawyer at Rosenberg Martin Greenberg can help you successfully navigate these programs and use them to optimal advantage.

Key facts about the IRS Fresh Start initiative

Acknowledging the difficulties faced by numerous individual and small business taxpayers in keeping current with their tax obligations, the IRS has instituted a number of “Fresh Start” provisions in recent years aimed at making compliance easier to achieve. The program is meant to facilitate payment of back taxes and help taxpayers avoid liens and other collection techniques by implementing several key changes to existing agency practices. If you have been hoping for help with IRS back taxes, these rules adjustments may be just what you need.

Changes to tax lien provisions

Federal tax liens are claims filed by the government against a delinquent taxpayer’s property as a means of enforcing tax obligations. Such liens can be extremely onerous, as they prevent property owners from utilizing or disposing of their assets until their tax debts are satisfied. However, the IRS Fresh Start initiative raised the threshold at which the agency will filed a Notice of Federal Tax Lien from $5,000 to $10,000 in outstanding taxes. This seemingly small change can make a big difference for those attempting to regain financial stability after experiencing a significant hardship.

Penalty relief provisions

Another part of the IRS Fresh Start initiative involves the implementation of financial penalty relief for certain unemployed taxpayers. Failure-to-pay penalties can be lifted if outstanding obligations are paid within an designated (extended) period of time. There are specific eligibility criteria for penalty relief of this type, and a tax attorney at Rosenberg Martin Greenberg can help assess your current situation and determine if you qualify for this additional assistance.

Other areas impacted by Fresh Start provisions

Taxpayers who have recently found themselves behind in their obligations will be relieved to learn that the IRS Fresh Start initiatives also extend to the areas of installment agreements, offers in compromise and other mechanisms which have been bolstered in order to encourage delinquent taxpayers to return to the fold and get back into compliance. While each facet of these programs has its own eligibility requirements, the initiative as a whole can prove invaluable to individuals and small business taxpayers who have fallen behind but wish to regain good standing with the IRS.

Advice from seasoned Maryland tax lawyers

At Rosenberg Martin Greenberg, we understand how intimidating the labyrinth of IRS rules and regulations can be, particularly to those who have found themselves unable to pay the full amount of their tax liabilities. The thought of trying to dig out of a hole that just seems to get bigger and bigger can be daunting indeed. However, by enlisting the aid of experienced, knowledgeable tax attorneys, it really is possible to untangle even the most complicated tax problems and secure the “fresh start” you desire.

If you are ready to explore your options under these or any other IRS initiatives, or would simply like to receive a comprehensive evaluation of your unique tax situation, contact Brian Crepeau at 410-649-4981.