![]() Your chances of achieving an Offer in Compromise increase tremendously if you have a certified tax relief company on your side. Due to the strict requirements for an OIC, not everyone who owes thousands of dollars to the IRS will qualify for the program. This method is reserved only for taxpayers who are in difficult economic situations, and do not have the financial resources to pay off their federal tax debt in full. It is the best form of Fresh Start tax relief available through the Fresh Start Initiative.Īlthough an Offer in Compromise is the best option to reduce your tax debt through the Fresh Start Program, the qualifications are strict. Your chances of making smaller monthly payments are more likely if you use a professional tax relief company to represent you on your behalf.Īn IRS Fresh Start Program Offer in Compromise, or OIC, is an agreement that allows taxpayers to resolve their tax debt for less than the full amount they owe. While an Installment Agreement is a valid form of Fresh Start tax relief, compromising with the IRS for a reasonable monthly payment is difficult. With the ability of the IRS to include interest in your outstanding account amount, you will end up paying more than you originally owed. This plan is also a great way to show the IRS that you are willing to resolve your debt.Ī downside is that the IRS will continue to apply interest to your total debt, even if the amount you are required to pay monthly changes under the Fresh Start Program. Once you are on an installment plan, you will no longer receive IRS collection letters or be susceptible to penalties. These payments go directly to the taxpayer’s overall tax debt, and continue until the debt is paid in full. It allows taxpayers to pay an agreed-upon amount every month to the IRS. There are four main programs available to taxpayers through the Fresh Start Program:Īn Installment Agreement is a payment plan offered through the Fresh Start Program. After approval, the taxpayer will find out what the new amount of their payment will be. Once they submit the application, and it is received and processed by the IRS, they will find out if they qualify for Fresh Start tax relief. The taxpayer may have to fill out a form on the IRS website, call or email an IRS representative, or make an appointment to visit their local IRS office to determine eligibility before they are approved. The financial situation of the taxpayer is the IRS’s primary criteria for evaluation. This helps the taxpayer reach an agreement with the IRS, and allows the taxpayer to pay an amount they can reasonably afford. The Fresh Start Program mandates that the IRS cannot collect more than a taxpayer can pay. They do not have the means to pay the IRS $15,000, and most likely, they will never have the means to repay the IRS the amount they owe. This taxpayer may also be out of work, and barely able to afford utilities and living expenses. How Does the Fresh Start Program Work? Say a taxpayer owes the IRS $15,000 due to years of back taxes, plus compounded interest and penalties. This is why it is referred to as the IRS Fresh Start Program. The Federal Government created the program, but the IRS is obligated to offer it to eligible American taxpayers who have current tax debt. ![]() What is the Fresh Start Initiative, and is it the Same as the IRS Fresh Start Program? Although the different names may understandably cause confusion for some, the IRS Fresh Start Initiative is the same as the Fresh Start Program, or the Fresh Start Tax Relief Program. Learning about the requirements and application process to see if you qualify for Fresh Start tax relief can help save you months or even years of payments to the IRS, giving you the opportunity to use that money to support your family, start a business, complete your education, or improve your community. It was designed to help taxpayers stuck in debt reduce the amount they owe, so they can get back on track with their tax payments and begin to plan for their financial future. Taxpayers who apply and are considered eligible can significantly reduce their federal tax debt in some circumstances, they may be able to reduce 90% or more of what they owe.įor some taxpayers, the Fresh Start Program is their best chance to reduce tax debt. The IRS Fresh Start tax program can help taxpayers who owe much more than they can reasonably afford to pay. It is a response by the Federal Government to the predatory practices of the IRS, who use compound interest and financial penalties to punish taxpayers with outstanding tax debt. ![]() The Fresh Start Initiative Program provides tax relief to select taxpayers who owe money to the IRS. The Fresh Start Program, or the Fresh Start Initiative, was created in 2011 by the United States Federal Government. ![]()
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