The Fresh Start Program was initiated by the Internal Revenue Service in 2011 to help taxpayers who are struggling to pay their taxes. The goal of the fresh start program was to make it easier for taxpayers to pay back taxes and avoid liens and other collection actions by the IRS.
The Fresh Start Program had several components, including:
- Expanded Installment Agreements: The fresh start program made it easier for taxpayers to qualify for installment agreements. Taxpayers who owe less than $50,000 in taxes can enter into installment agreements without having to provide detailed financial information to the IRS, but there are some requirements that must be met related to payment method, length of the payment period, and other items.
- Offers in Compromise: The fresh start program also included changes to the Offer in Compromise (OIC) program, which allows taxpayers to settle their tax debt for less than the full amount owed. The changes have made it easier for taxpayers to qualify for an OIC by expanding the allowable expenses used to calculate a taxpayer’s ability to pay.
- Penalty Relief: The Fresh Start Program also provided penalty relief for taxpayers who have been unemployed for at least 30 consecutive days or who are self-employed and have experienced a significant drop in income.
The goal of the Fresh Start Program is to make it easier for taxpayers to pay their taxes and avoid the harsh consequences of unpaid tax debt. However, it’s important to note that not all taxpayers will qualify for the program, and those who do must still meet certain criteria and comply with IRS rules and regulations.
Struggling with Taxes? We Can Help You Utilize the Fresh Start Program
If you owe taxes and can not pay in full, contact us for a free consultation.
