The IRS Fresh Start Initiative was created to offer concessions to distressed taxpayers. The program consists of various tax relief options that help individuals who can’t afford to pay their tax debts. To qualify for the program, you must be able to demonstrate that paying your taxes would cause financial hardship. The eligibility rules for each of the different options vary, so it’s best to consult a knowledgeable tax relief expert or visit the IRS website for accurate information.
What is the IRS fresh start strategy?
The irs fresh start program has been around since 2011 and offers some significant benefits for qualified taxpayers. It can provide penalty relief, installment payment plans, and even lien withdrawals to those who qualify. There are a number of ways to participate in the program, including requesting currently not collectible status, submitting an offer in compromise, or setting up a streamlined installment agreement with direct debit payments. There are fees involved in setting up these programs, depending on your income level and how you apply.
The irs fresh start program isn’t actually a “program” per se, but rather a collection of taxpayer-friendly changes that the IRS rolled out years ago. Some of the most notable updates include allowing taxpayers to set up streamlined payment agreements if they owe less than $250,000, not issuing liens if you owe less than $10,000, and offering leniency for first-time penalty abatements. These types of changes have helped many people settle their unpaid taxes and improve their credit scores.