The IRS Fresh Start Program is an initiative introduced by the Internal Revenue Service (IRS) to assist taxpayers who are facing financial difficulties in meeting their tax obligations. The program aims to provide more flexible options for individuals and small businesses to settle their tax debts and achieve a fresh start. The Fresh Start Program offers several key features:
1. Installment Agreements:
Taxpayers who owe $50,000 or less in combined tax, penalties, and interest may qualify for an installment agreement. This allows them to pay off their tax debt over an extended period of time, typically up to 72 months, through monthly payments.
2. Offer in Compromise (OIC):
The Fresh Start Program expanded the eligibility criteria for an Offer in Compromise, which is an agreement between the taxpayer and the IRS to settle the tax debt for less than the full amount owed. This option is available for taxpayers who demonstrate that paying the full tax liability would cause financial hardship.
3. Penalty Relief:
Under the Fresh Start Program, some taxpayers may be eligible for penalty relief. This means that certain penalties, such as failure-to-file or failure-to-pay penalties, may be reduced or waived in specific circumstances.
4. Lien and Levy Relief:
The program provides more flexible options to help taxpayers avoid or release tax liens and levies. Taxpayers may qualify for lien withdrawal, which removes the public notice of the tax lien, or for a streamlined process to release a levy.
It’s important to note that while the Fresh Start Program offers these options, taxpayers must still meet certain criteria and follow the proper procedures to take advantage of the program’s benefits. It’s recommended to consult with a tax professional or visit the IRS website for more information and guidance tailored to individual circumstances.
Disclaimer: The information provided here is for general informational purposes only and should not be construed as legal or financial advice. For specific guidance regarding your tax situation, please consult with a qualified tax professional or visit the official IRS website.