A Guide to the IRS Fresh Start Program
A Guide to the IRS Fresh Start Program

A Guide to the IRS Fresh Start Program

Debt relief

Taxpayers who owe a significant amount of money to the IRS often look for different ways to offset or defer their debt. Or even better, discover ways to give them enough debt relief so they won’t have to feel like the debt is continuously weighing on them. The good news is the IRS Fresh Start program was implemented in 2011 to provide different options to taxpayers who owe taxes to the IRS. This quick guide can help you determine whether the IRS Fresh Start program is right for you. 

Tax Penalty Relief

One of the most notable details about the IRS Fresh Start program is providing tax relief from the IRS penalties. The penalties for paying your tax bill late, or not paying at all, can be significant and put taxpayers in a challenging position. By merely reducing or even eliminating some of the tax penalties, the IRS could be saving certain taxpayers thousands of dollars and provide them with instant relief in the process. 

Streamlined Installment Agreements

Through the IRS Fresh Start program, installment agreements can be made to allow taxpayers to make an IRS payment periodically to pay off their debt over time. The IRS recently added to the program installment agreements to make it even more streamlined. The taxpayer and the IRS will agree on a particular payment amount, and the taxpayer is given 72 months to pay the bill in full. An exception would be if the Collection Statute Expiration date occurs first. Specific standards and requirements must be met to enter into this agreement, but it is a great way for people to slowly pay off their debt without putting a significant dent in their bank account at one time.

Raised Thresholds On Tax Liens

If a taxpayer owes $25,000 or less in taxes, they can ask the IRS to remove any property liens. However, this might only be granted if the taxpayer agrees to an installment plan where an IRS payment is withdrawn monthly and automatically from their bank account. The $25,000 threshold is higher than the previous amount of $5,000, so taxpayers have a little more breathing room to avoid having a lien put on their property.

Get Debt Relief And Settle For Less Than What You Owe

Part of the IRS Fresh Start program also allows taxpayers to take advantage of an Offer in Compromise (OIC). With an OIC, taxpayers provide the IRS with a reasonable amount they can expect to pay in taxes before the Collection Expiration date. Usually, it must be proven that a taxpayer won’t be able to pay off their taxes through installment agreements or other means before an OIC is accepted. 

Rocket Tax Relief provides a full range of services to help you get as much tax relief as possible. While complete debt relief isn’t always reasonable, we help our clients find ways to breathe a little easier, knowing they don’t have as big of tax bills as they thought initially. If you need a fresh start with your taxes, contact us today, and we will review your situation thoroughly and provide the best options for you to consider.