What is the IRS Fresh Start Initiative?

IRS Fresh Start Initiative helps taxpayers who owe money to the IRS. Under certain circumstances, taxpayers can have their unpaid federal taxes partially forgiven. When the IRS considers forgiving a tax balance, the financial situation of the taxpayer is their primary criteria. Basically, the IRS cannot collect more than a taxpayer can pay.

Taxpayers that have the financial resources to pay only a partial amount of their federal taxes can apply for the IRS government payment plan called an Offer in Compromise (OIC) to resolve the outstanding balance. Considering the financial capacity of the taxpayer, the IRS might significantly reduce the total debt to an amount that the taxpayer can pay. The reduced tax debt amount can be paid in a lump sum or in fixed monthly installments.

There are strict qualification requirements for an OIC and not everyone who owes thousands of dollars to the IRS will qualify for the program. Refer to our “Avoid Scam” section to make sure you stay away from fraudulent companies that promise you an Offer in Compromise, without first analyzing your specific tax situation, and preparing the necessary forms for the IRS, since the IRS is the only one that can approve an OIC.

Who qualifies for the IRS Fresh Start Initiative?

To for the IRS Fresh Start initiatives, you’ll need a couple of things at a minimum. First, any missing or unfiled tax returns must be filed. Second, it is typically required that you are current with your estimated tax payments or your current withholdings are correct, and they have been so for the last 6 months.

How To Apply For IRS Tax Forgiveness Program

To make it easier for taxpayers to qualify for the tax forgiveness program, the IRS has expanded their Fresh Start initiative. The Fresh Start initiative offers taxpayers the following ways to pay their taxes:

  • Tax Liens:The Fresh Start program increased the amount that taxpayers can owe before the IRS generally will file a Notice of Federal Tax Lien. That amount is now $10,000. However, in some cases, the IRS may still file a lien notice on amounts less than $10,000.
  • Installment Agreements:Some taxpayers may qualify to pay their delinquent federal taxes in monthly installments if they cannot pay their tax debt in full.
  • Offers in Compromise: An Offer in Compromise (OIC) is an agreement that allows taxpayers to resolve their tax debt for less than the full amount that they owe. The Fresh Start Initiative expanded and streamlined the OIC program. The IRS now has more flexibility when analyzing a taxpayer’s ability to pay. This makes the Offer in Compromise program available to a larger group of taxpayers.

If you are considering applying to the Fresh Start Program, let our experts guide you through the processes. Give us a call at 833-419-RISE (7473).

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