The fresh start initiative was first launched by the IRS in 2011, striving to assist individual taxpayers and small business owners struggling to settle their overdue tax liability by reworking its collection policies. The program aims to make it easier for taxpayers to settle their outstanding balances, pay outstanding taxes within an extended timeframe and possibly to avoid tax liens, garnishments, and levies.
The IRS fresh start program offers a myriad of benefits for taxpayers who qualify. Firstly, the initiative has increased the threshold at which IRS tax liens are issued; now tax liens are filed for individuals who owe $25,000 or more. Second, the access to installment agreement plans has expanded, allowing taxpayers to pay their tax liabilities overtime. Individuals who owe up to $50,000 can now qualify for an installment payment plans that span for six years. Lastly, the program streamlined the Offer in Compromise settlement option and has made it easier to qualify. Qualifying taxpayers can now settle their IRS liabilities for an amount that is less than they owe.
The IRS Fresh Start Program is not a single offering. While every tax situation differs from the others and requires a unique, specialized approach, the Fresh Start Initiative offers the following options for taxpayers to choose what best suits their circumstances.
The Installment Agreement program allows individual taxpayers who are unable to pay their tax liabilities in full to create a monthly payment plan with the IRS to pay the back taxes within an extended timeframe. While the IRS determines the amount to be paid each month, the presence of a qualified tax attorney is essential during the negotiations phase to obtain the lowest affordable monthly payment plan. Once the installment agreement is established, it is important to make the agreed monthly payments timely.
Taxpayers can contact the IRS directly in order to apply for the Fresh Start Program. As for the installment agreements, you may be able to apply online. For the Offer in Compromise plan, you will need to complete the IRS Form 656 Booklet.
For further information on whether you qualify for either of the options under the IRS Fresh Start Initiative, contact our tax professionals at Coast One Tax Group to help you settle your tax liabilities.