IRS Fresh Start Program
The IRS announced a new “Fresh Start” program, designed to allow taxpayers to regroup financially, getting a new start on their finances. This program provides taxpayers an opportunity to limit the damage IRS tax collection activity may have had on their credit report and credit score, thus impairing their ability to obtain new credit, or credit at a fair market rate. Among the highlights of the program are the following: Tax Liens The IRS increased the dollar threshold for filing notice of tax lien. The new threshold amount is $10,000, up from $5,000. There is an exception in the case of a taxpayer bankruptcy or other similar action. Keep in mind that a Federal Tax lien is an IRS demand for payment from the taxpayer, within 10 days of the letter delivering a copy of the lien. This is a statutory process which the IRS must follow. A Notice of Federal Tax lien is a formal filing in the public records of the county of residence of the taxpayer and allows IRS to establish