• The short answer to this question is, yes: the IRS does indeed offer a Fresh Start program. The program was created in 2011 and provides taxpayers with certain tax relief options that can help them payoff their back taxes and become compliant with their federal tax obligations. Specifically, the Fresh Start Program offers taxpayers several options, including streamlined installment agreements, penalty and interest abatement, expanded tax lien withdrawal criteria, and the ability to offer in compromise.
• Each of these options is designed to provide taxpayers with a way out of their tax debt situation, allowing them to pay back what they owe without getting further into financial hardship. However, not all taxpayers are eligible for every option under the Fresh Start Program. Eligibility is based on specific criteria, so taxpayers should contact the IRS for more information about their particular situation.
• In addition, it's important to note that the Fresh Start Program does not provide permanent tax relief from back taxes or penalties and interest accrued before enrollment in the program. Taxpayers who fail to stay compliant
• The IRS Fresh Start Program is designed to provide taxpayers with an option to make it easier to pay their taxes and get back on track with the IRS. This program provides struggling taxpayers with a range of payment options, including installment agreements and offers in compromise.
• The Fresh Start Program also helps taxpayers by providing resources and guidance in understanding how to effectively manage their tax obligations. By taking advantage of these resources, taxpayers can get back on track with the IRS and put taxes behind them.
• Instead of one lump sum, Fresh Start Program allows taxpayers to pay the IRS through a monthly payment plan. Anybody who owes taxes and is having a difficult time paying their debt in full can sign up for this type of installment agreement. Every month, taxpayers can pay a set amount toward their taxes. The payment will continue until the taxpayer has paid off the entire amount they owe.
• No more IRS collection letters or penalties when you sign up for an installment plan.
According to the IRS, if you want to join the Fresh Start Program and have your debt forgiven, you must first prove that you're dedicated to repaying it. Even though your monthly payments may change, the IRS still charges interest on your entire debt amount--so ultimately, you'll end up paying more than what was originally owed.
• An OIC, or offer in compromise, is a contract between the IRS and a taxpayer that settles the taxpayer’s tax liabilities. Most of the time, the IRS only considers an OIC (offer in compromise) if they think the person can't pay all their taxes. They figure out how much money that is - which we call reasonable collection potential or RCP - by thinking about things like income and assets.
• The IRS designates taxpayers unable to pay their taxes as "non-collectible." This is different from the other three Fresh Start tax relief programs. When a taxpayer enters Non-Collectible Status, the IRS must stop all collection practices including bank levies, wage garnishments, and tax liens, and cease sending threatening letters. This status does not erase the debt but provides relief from Active Collection by allowing the taxpayer to begin finding their Fresh Start Tax Relief.
If you want your IRS debt to be classified as currently not collectible, you need to meet the qualifications set by the Fresh Start Program.
The IRS Fresh Start Initiative Program can be complicated to apply for, so you should speak with a tax professional beforehand. If you attempt to do it by yourself, the IRS might take advantage of your lack of understanding and get you to agree on terms that work better for them instead.
• The IRS may lower or do away with a penalty if the taxpayer can show "reasonable cause," just as it offers Fresh Start tax relief. The term the IRS uses for this is "Penalty Abatement."
• The best way to increase your chances of getting tax relief through the Fresh Start Initiative is by including as much documentation and evidence as possible with your request.
A few items you will need to finish this application are (but are not restricted to) death certificates of relatives, doctor or medical reports, student loan records, insurance claims, or fire department accounts. To have the best probability of having your request for waiver authorized, write a letter along with Form 843 that describes your situation and explains why you're unable to pay the continuing tax debt.
The Fresh Start Program offers tax relief to people who file all missing or unfiled tax returns and make sure that filings for the past six months are either current or correct.
Your request is more likely to be accepted if you use the services of a professional tax relief company.
• The IRS Fresh Start Program is designed to help taxpayers who are struggling with their tax obligations. To qualify for this program, you need to meet certain criteria.
• Make sure you're up-to-date with your current filing requirements before anything else. This includes any person or business tax returns that have not been filed or are not current. Secondly, you need to pay all estimated taxes for the ongoing year on time and entirely. Lastly, you need to demonstrate that you can payoff your tax debt within 72 months.
• If you're struggling to keep up with your taxes, consider taking advantage of the IRS Fresh Start Program. Ideal Tax can help you get your finances in order and take advantage of this program to give yourself a clean slate. Don't hesitate to reach out for assistance — they're more than happy to help!