At the end of 2014 Fresh Start Tax Relief was hired by a local Chicagoan. He lives two blocks from our office. A balance due on his 2013 1040 tax return prompted him to call.
He already had a formal Installment Agreement in place on a $2,500 tax debt from 2010 and wasn't sure how to handle an additional $10,000 tax debt from 2013.
Here's what we were able to help him figure out.
- His accountant did not eFile his 2013 tax return as promised.
- He will be able to include his new 2013 balance due into one Installment Agreement along with his 2010 balance.
- He will not have to provide the IRS any financial information to the IRS to secure the new Installment Agreement, as long as the balance is paid within 72 months.
- His agreement will need to be a Direct Debit IA, which should also allow him to avoid a tax lien.
- He should qualify for the IRS First Time Abatement to remove two penalties totaling approximately $1,700.