The Internal Revenue Service introduced the IRS Fresh Start Program in 2011. At the time, the IRS said the program was designed to help people earn “a fresh start with their tax liabilities.”
But over a decade later, some Americans are still hearing about it for the first time and wondering, “What is the IRS Fresh Start Program?” Not everyone is aware of the Fresh Start initiative and how it could help them with outstanding tax debts.
Check out five things you should know about the IRS Fresh Start Program below.
If you visit the “Get help with tax debt” page on the IRS website, you might expect to find a large section devoted to the IRS Fresh Start Program. But you won’t find anything other than one quick mention of the IRS Fresh Start Program, and there is a very simple explanation for it.
The IRS doesn’t have a dedicated section for its Fresh Start program because this isn’t what the program is called anymore. Instead, taxpayers will be redirected to the “Offer in compromise” page since this is what the IRS now offers to those with delinquent tax liabilities.
No matter what the IRS calls its Fresh Start Program, the agency maintains the same mission. This program is meant to help those who have fallen behind on their taxes and face tax levies.
In some cases, the IRS will accept offers in compromise and allow people to settle their tax debts for less than what they owe. In other instances, the IRS will accept installment agreements to provide people with payment flexibility. The agency will even sometimes extend penalty abatement to make it easier for people to catch up on tax liabilities.
If you fail to pay taxes for an extended time, the IRS will typically contact you at least a few times to urge you to take care of your tax liability. If you don’t comply with this request, the IRS will place a federal tax lien on your assets.
Unfortunately, you’ll have a tough time removing a federal tax lien under normal circumstances. But with the IRS Fresh Start Program, you can usually have a federal tax lien removed by bringing your tax liability under the $25,000 mark and/or entering into a Direct Debit Installment Agreement with the IRS.
One important thing to remember when you’re wondering, “What is the IRS Fresh Start Program?” is that not every person with a tax liability will qualify. The IRS routinely changes the requirements, but there are a few basic ones you’ll need to meet:
Individual taxpayers tend to wonder, “What is the IRS Fresh Start Program?” more than small business owners. However, individuals and small business owners can both apply for IRS assistance.
Either way, consider working with a tax professional who understands the IRS Fresh Start Program inside and out. They can lend a hand when you’re looking to eliminate a lingering tax liability.
A tax professional from Levy & Associates can help find answers to questions like, “What is the IRS Fresh Start Program?” and provide qualified tax assistance. Contact us by calling 313-447-1704 or filling out this form.
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