A Friend Told Me About the IRS Fresh Start Initiative – Do I Qualify?

On: July 5, 2023

Not being able to pay the taxes you owe can cause you a lot of undue stress and hardship. Not only do you have to worry about whether to put food on the table or pay the tax bill, but you also have to worry about the IRS notices and collection efforts. 

If you have a tax debt and cannot pay or you want to explore alternative options for payment assistance, don’t hesitate to reach out to an IRS tax expert. They can help you better understand available programs such as the IRS Fresh Start Initiative. 

What Is the Fresh Start Initiative?

The Fresh Start Initiative is not a singular program to help alleviate tax debt. In fact, it is a compilation of different available resolution options that allow both individual taxpayers and businesses to manage their tax debt liabilities in an affordable manner. 

In order to qualify for the Fresh Start Initiative Program, a taxpayer must meet certain criteria. This is where a tax professional comes in handy. They can help ensure that you not only meet the criteria but can help you apply for the different resolution options. 

The idea behind this program is to help make tax debt affordable for taxpayers so that taxpayers can avoid collection activities such as wage garnishment, liens, or levies. 

What Are the Options Under the Fresh Start Initiative?

There are several options available under the Fresh Start Initiative Program. The option that works best for you will depend on how much tax you owe, your current financial situation, and whether you qualify. In general, the available resolution options include installment agreements, Offers in Compromise, tax lien releases, and penalty abatements. 

Installment Agreement

An installment agreement allows you to pay your taxes by breaking them down into affordable monthly payments. The exact amount you will pay monthly is calculated by the IRS and your current financial situation. You may qualify for short-term options or long-term options. 

Offer in Compromise 

When taxpayers are facing serious financial hardships, they can apply for an Offer in Compromise or OIC. An OIC is an agreement between the taxpayer and the IRS to settle a tax debt for a lesser amount than originally owed. The IRS is known for being very particular when it comes to accepting OICs, so it is crucial that you work closely with a tax expert should you want to go this route. 

Tax Lien Release 

Under the Fresh Start Initiative Program, you can request to have a current tax levy released if you have paid off your tax debt. It is possible to have a lien released in other circumstances that can be explored with your tax team. 

Penalty Abatement

Whenever you file a late tax return or you do not pay your tax debt on time, the IRS adds penalties, which can quickly add to the debt you already owe. Under the Fresh Start Initiative Program, you can apply to have the penalties abated. Taxpayers wishing to have their penalties released will need to meet specific criteria. 

Will I Qualify for the Fresh Start Initiative Program?

The IRS has criteria that a taxpayer must meet to be eligible for the Fresh Start Initiative Program. Both individual taxpayers and business owners have different criteria that must be met. 

In general, you will need to owe less than a specified amount of money, be current on all your taxes and filings, and agree to specific repayment terms. Additional criteria may be required as well. 

Leading Tax Group Can Help You Apply for the IRS Fresh Start Initiative Program 

Applying for the IRS Fresh Start Initiative Program can significantly help many taxpayers afford the tax debt that they currently owe. There are specific criteria that must be met to be able to apply and the IRS is known to reject applications when they are not filled out correctly. 

It is important to work closely with IRS tax experts to ensure that you not only qualify for the program but that you apply properly so that you can get the relief you need. 

If you would like to discuss the IRS Fresh Start Initiative Program, call Leading Tax Group today.