IRS Fresh Start Program

IRS Fresh Start Program

There is a new system called the IRS Fresh Start Program which aims to make it easier for people to pay back taxes and avoid a lien coming against them. There are three major parts to the IRS program. Tax liens, installment agreements and offers of compromise are the three features of the program.

The program increases the amount a person can owe before the IRS will file a notice of federal tax lien. Even though the IRS can file before the 10,000 limit this does increase it for the average person.

The IRS has also agreed to more installment options. One can file for an installment plan right over the internet. This could increase monthly payments for up to six years. If the agreement needs to be extended for longer than six years, financial hardship would have to be shown to the IRS.

Offers in Compromise are another agreement for taxpayers to be able to pay off debt but at a lesser amount. The IRS is now more flexible in its way to look at the taxpayers ability to pay. Generally the IRS will accept an offer if they feel it is a fair amount for a reasonable amount of time offered.

This new program will hopefully help taxpayers starting with the 2012 taxes. With compromise from both the IRS and the taxpayer all parties can be satisfied. The taxpayers will also feel less likely that they are being targeted and forced to pay amounts that they can never reach.

Turbo Tax Mobile Apps

Mobile apps are current big news in the world of tax preparation. From providing tax information to allowing users to e-file, these apps are on the rise.

Unlike many competitors, TurboTax is one app that allows users to e-file a 1040EZ with their iPhone or Android device.  Data from around 400,000 financial institutions and employers, W-2 Express, various 1099 and 1098 forms, charitable-deduction records from ItsDeductible, accounting records from popular software like Quicken and QuickBooks, along with any data saved in a .cfx or .txf format are able to be entered. Bob Meighan, vice president of consumer advocacy at TurboTax, said that the goal is to allow taxpayers to use as few of keystrokes as possible to complete and file their tax returns.

In order to keep your information safe, incomplete return files are purged. Completed returns are accessible, which provides a benefit if you use the same app to file in following years.

Consumer Questions
TurboTax has enrolled agents and CPAs on hand to answer any tax questions that you might have.  This unlimited “Ask a Tax Expert” service is available via chat and telephone. You must log into your tax-return file to get an answer, but the answer will be available for you. TurboTax also has an impressive Live Community database, which has answers to thousands of tax questions.

Audit Support
If you find yourself in need of tax audit support, TurboTax has a solution for you as well. For $39.95, you’ll be walked through the steps you need to take to prepare for an audit.