What is IRS Fresh Start Program

The IRS Fresh Start Program is a set of initiatives introduced by the Internal Revenue Service (IRS) to help struggling taxpayers who are facing financial difficulties. The program is designed to provide taxpayers with more favorable payment options, increase the amounts they can owe, and extend the time they have to pay back taxes.

The goal of the IRS Fresh Start Program is to help taxpayers get back on their feet and avoid the harsh consequences of tax debt, such as wage garnishments, bank levies, and property liens.

To qualify for the IRS Fresh Start Program, taxpayers must meet certain eligibility criteria. Here are the IRS Fresh Start Program Qualifications.

1. Tax Debt: To be eligible for the Fresh Start Program, taxpayers must owe taxes to the IRS. The tax debt must be for income tax, self-employment tax, or trust fund recovery penalties. Taxpayers cannot have any other tax liabilities, such as employment taxes or excise taxes, that are not eligible for the program.
2. Filing Requirements: Taxpayers must have filed all required tax returns to be eligible for the Fresh Start Program. If they have not filed a tax return, they must do so before they can apply for the program.
3. Income: Taxpayers must have a sufficient level of income to support their payment plan. This means that they must have enough income to cover their basic living expenses and their tax debt payments.
4. Collection Statute Expiration Date: Taxpayers must not have a Collection Statute Expiration Date (CSED) that is imminent. The CSED is the date after which the IRS can no longer legally collect a tax debt. If the CSED is close, taxpayers may not be eligible for the Fresh Start Program.
5. Payment History: Taxpayers must have a good payment history. This means that they must have made all required tax payments on time and in full. Taxpayers who have a history of not paying their taxes on time may not be eligible for the Fresh Start Program.

Once taxpayers meet these eligibility criteria, they can apply for the Fresh Start Program by contacting the IRS. Taxpayers who are unable to reach an agreement with the IRS may be able to get assistance from a tax professional or advocate.

The IRS Fresh Start Program offers several benefits for taxpayers who are struggling to pay their tax debt. Here are some of the most significant benefits:

1. Payment Plans: The Fresh Start Program allows taxpayers to enter into payment plans with the IRS. Taxpayers can choose from several payment plan options, including installment agreements and partial payment plans. This gives taxpayers the opportunity to pay their tax debt over time, rather than all at once.
2. Increased Amount Owed: The Fresh Start Program increases the amount of tax debt that taxpayers can owe and still be eligible for a payment plan. This means that more taxpayers can qualify for a payment plan and get the help they need to pay their tax debt.
3. Extended Time to Pay: The Fresh Start Program extends the time taxpayers have to pay their tax debt. Taxpayers who enter into a payment plan may have up to 72 months to pay their tax debt in full.
4. Penalties and Interest Reduced: The Fresh Start Program also reduces penalties and interest on the tax debt. This makes it easier for taxpayers to pay their tax debt and get back on track.
5. Collection Actions Suspended: If taxpayers enter into a payment plan with the IRS, collection actions, such as wage garnishments and bank levies, are suspended. This gives taxpayers the time and peace of mind they need to focus on paying their tax debt.

In conclusion, the IRS Fresh Start Program is an important resource for taxpayers who are facing financial difficulties.