The Facts About the IRS Fresh Start Program

The IRS Fresh Start Program is a suite of initiatives designed to help taxpayers who are struggling to pay their taxes. The program includes changes to make it easier to qualify for Installment Agreements and Offer in Compromise, along with expanding the eligibility criteria for Currently Not Collectible status. The intent of the program is to help taxpayers get back on their feet and resume paying their taxes. 

The most important thing to know about the IRS Fresh Start Program is that it is not a free pass. The program does not forgive any tax debt, and it does not absolve taxpayers of their responsibility to pay their taxes. The program is simply designed to make it easier for taxpayers who are struggling to get back on track. 

How the Program Works

The first step in the IRS Fresh Start Program is identifying which initiatives are right for you. You can do this by reviewing the information on the IRS website or by contacting a tax professional. 

Once you have determined which programs you qualify for, you can begin the process of enrolling in the program. The enrollment process will vary depending on which program you are enrolling in, but generally, it will involve filling out some paperwork and sending it to the IRS. 

Once you have been accepted into the program, you will be required to adhere to certain terms and conditions. For example, if you are enrolled in an Installment Agreement, you will be required to make your payments on time and in full. If you are enrolled in the Offer in Compromise program, you will be required to submit certain documentation and meet certain requirements. 

It is important that you understand all of the terms and conditions of the program before enrolling, as failure to comply with the terms of your agreement can result in serious consequences. 

The IRS Fresh Start Program is a great way for taxpayers who are struggling to get back on track with their taxes. However, it is important to understand that this is not a free pass – taxpayers who enroll in the program are still responsible for paying their taxes in full and on time. If you think that you might benefit from the IRS Fresh Start Program, be sure to contact a tax professional or visit the IRS website for more information.

the IRS' 6 Year Rule for Corporate Taxes

Blog Introduction: As a business owner, it's important to stay up-to-date on all the latest tax laws and regulations. After all, no one wants to get slapped with a hefty fine from the IRS! One rule that's often unclear is the 6 year rule for corporate taxes. Read on to learn more about what this rule entails and how it may affect your business.

What is the 6 Year Rule?

The 6 year rule refers to the IRS' guideline that businesses must keep corporate tax records for at least 6 years. This includes any records that may be used to determine your tax liability, such as receipts, invoices, bank statements, etc. 

Why Does the IRS Require This?

The IRS requires businesses to keep records for at least 6 years in case they are audited. During an audit, the IRS will ask to see your records in order to verify your income and expenses. If you don't have the proper documentation, you may be subject to penalties or fines. 

How Long Should I Keep My Records?

While the IRS requires you to keep records for at least 6 years, it's always best to err on the side of caution. We recommend keeping your records for at least 7-10 years, just to be safe. That way, if you are ever audited, you'll have peace of mind knowing that you have all the documentation you need. 

Staying compliant with the latest tax laws is essential for any business owner. The 6 year rule for corporate taxes is just one example of a guideline that business owners must follow. By understanding this rule and keeping accurate records, you can avoid any potential penalties from the IRS.