The IRS fresh start program is designed to expand the assistance and benefits offered by the Restructuring and Reform Act of the IRS. This makes it easier for taxpayers to handle excessive back taxes or swiftly get out of debt with the IRS.
The initiative has been fully available since the 2016/2017 tax year, but if you want to take full advantage of this tax debt relief opportunity, you should act now because you cannot predict how long it will last. While the program is a unique opportunity to see off your tax debts, you will need to understand what it is about and how to go about it.
For those who are having trouble paying IRS dues, this content will show you how to achieve a working IRS Tax Resolution. It is a step-by-step guide highlighting the process from initial paperwork to negotiating and reaching an agreement with the IRS as quickly as possible.
What Is The IRS fresh start program All About?
The Fresh Start Program was set up to help taxpayers with IRS back taxes take care of their debt more efficiently. The program has seen the introduction of several significant changes to the IRS tax debt relief laws. Thus, significantly loosening the eligibility restrictions and taking away individual requirements entirely making it a possibility for millions of Americans to get the tax relief benefits they desperately need. The program is applicable not just to individual taxpayers, but also to small business owners who are having issues with outstanding taxes. So whether you owe tax for yourself or your company, you will be able to take advantage of the benefits that the program provides fully.
How Can The IRS Fresh Start Program Help Taxpayers Indebted To The IRS?
It is paramount to indicate that the purpose of the Fresh Start Initiative is to make it much easier for taxpayers to pay all taxes owed to the IRS and avoid liens. Even small businesses may benefit from the Fresh Start Initiative. Discussed below are three primary features of the program:
1. Tax Liens
The program has increased the sum that taxpayers are allowed to owe before the IRS can file a Federal Tax Lien notice against them. When a taxpayer meets some requirements and pays off their debt, the IRS can withdraw the Notice of Federal Lien they initially filed. Taxpayers have to request this in writing with Form 12277 (also known as Application for Withdrawal). Taxpayers may qualify if they want their lien notice to be withdrawn and if they are settling the tax debt via a debit installment agreement. Additionally, taxpayers need to request this with Form 12277. If a taxpayer should default on the debit installment agreement, the tax regulatory body may file a new Federal Tax Lien Notice against them and resume actions for collection.
2. Installment Agreements
The program has broadened routes to streamlined installment agreements. Although the IRS will generally not need a taxpayer to provide their financial statement, they might, however, need some financial data from the debtor. The fastest way to apply for any payment plan is via the Payment Agreement Tool on the IRS site. If you have no access to the Web, you have the option to file Form 9465 to apply.
3. Offer in Compromise
This can be defined as an agreement allowing taxpayers to settle their debt for less than the original amount owed. The Fresh Start Program streamlined and expanded the OIC initiative. The IRS is now more flexible when analyzing the ability of a taxpayer to pay. This option makes the program more readily available to a larger group.
How Can You Be Qualified and Submit an Application for the IRS Fresh Start Program?
The IRS Fresh Start Initiative isn’t just one big program. It’s a collection of tax debt relief options for you to utilize in the event that you owe back your taxes. Note that each alternative that the program offers carries specific requirements.
In other words, there’s no yardstick or standard list of conditions that a debtor must meet to qualify and apply for every program provided by the Fresh Start Initiative. But there are exceptions as is always the case. There are two critical requirements that all applicants must meet before they can qualify and apply for the program. All applicants for the program must:
- File their tax returns on schedule or promptly.
- Be current when it comes to their estimated taxes and any taxes that they are required to hold from employees in the current tax period.
The other requirements are unique to each avenue the debtor chooses to use to settle their tax debt. This is why it is best to consult with tax attorneys or tax relief experts so they can help you determine which program is best for you.
How Do You Apply For The IRS Fresh Start Program?
To apply for any payment plan of your choice, use the Online Payment tool on the IRS site. If you don’t want to make use of the online tool, you file Form 9465 instead with the aid of a tax lawyer. Deciding to apply for an installment agreement (especially when you give details of your assets and income sources out), can have dire consequences. Therefore, it’s wise to seek consultation with a tax lawyer or a tax relief agency so that they can hire a tax attorney for you before you reveal financial information that can be used to hurt you in a criminal investigation or an audit.
