IRS Fresh Start Program 

What is the IRS Fresh Start Program?

The Fresh Start Program or Fresh Start Initiative is for individuals that are behind on payments or have a past outstanding balance with the IRS. It also covers Individuals that have past due tax fillings. This program has saved taxpayers money since 2012. The Fresh Start Program has expanded to include additional options such as the ability for taxpayers to settle outstanding federal tax debt for less than the original tax debt due. 

Wondering if you qualify for the Fresh Start Initiative? Contact one of our experts for a free and confidential consultation today. We’ll help determine eligibility for the program. 

How can the IRS Fresh Start Program help me as a taxpayer? 

The IRS Fresh Start Initiative has four main programs designed to help taxpayers who owe back taxes. This include: 

• Offer In Compromise (OIC) – An Offer in Compromise allows taxpayers to settle IRS tax debt for less than the original amount owed. This is the best program available through the IRS Fresh Start Program. Since now we know this the best program available you should also know the qualifications are strict. An Offer in Compromise is for taxpayers that don’t have the financial means to pay off their tax debt and are in financial difficulty.

• Penalty Abatement (PA) – The term the IRS uses when whipping a penalty is called a penalty abatement. For a reasonable cause, the IRS can eliminate or reduce a penalty if requested by the taxpayer. An example of a reasonable cause can be the following: death or serious illness, civil disturbance, or destruction by fire.

• Currently Non-Collectible (CNC) – If the IRS believes that a taxpayer cannot pay back taxes in their current financial situation they may place you on a currently non-collectible status. Currently Non-Collectible Status does not remove tax debt however,  it stops the IRS from placing you in collections and taking actions such as tax liens, bank levies, wage garnishments, and receiving unfriendly letters from the IRS. This status can be extremely beneficial and offer relief and peace for a taxpayer.

• Installment Agreement (IA) – An Installment agreement is a payment plan offered by the IRS Fresh Start Program. Once the IRS has agreed on an amount the taxpayer can pay monthly and the amount is applied towards the total balance. The IRS will continue to apply penalties and interest towards the total balance and will pay more than the original amount you owed.

What is the IRS Fresh Start Program, and is it the Same as the IRS Fresh Start Initiative?

Yes, these are the same programs. This program was created by the federal government in 2011 and the IRS is obligated to offer it to qualified Americans that have tax debt or owe back taxes. The IRS Fresh Start Program has helped millions of Americans get back in compliance. 

What Are the IRS Fresh Start Program Qualifications?

Receiving tax relief through the IRS Fresh Start Program or the IRS Fresh Start Initiative can benefit qualified taxpayers. If a taxpayer proves that paying the tax balance would cause a major financial hardship the severity of the financial hardship determines which Fresh Start Program is available. 

There are guidelines that the IRS has for what constitutes a financial hardship, however, it’s the taxpayer or the tax relief firm hired to represent you that is responsible to prove that you fall in a hardship 

The IRS Fresh Start Initiative Program 2021

The Fresh Start Program saw a record number of applications and qualifications in 2020. Largely because of the COVID-19 pandemic which resulted in financial hardship for millions of Americans and resulted in taxpayers with higher odds of approval for the IRS Fresh Start Initiative. 

However, many taxpayers are still experiencing financial difficulty in 2022, especially small business owners, students, and families. Tax relief experts predict that the IRS will continue to stay lenient on the IRS Fresh Start Program for a little while longer.

The best way to know if you qualify for tax debt relief in 2022 is to check your eligibility as soon as possible for the 2022 IRS Fresh Start Initiative Program.  

Next Steps

If you have questions about the IRS Fresh Start Program. Our tax relief experts can guide you through the process. Reach out to us at 866-211.4564.

To find more information on Fresh Tax Solutions, and to learn about updates on the IRS Fresh Start Program for 2022  visit our blog.