What Is the IRS Fresh Start Program?
The IRS Fresh Start Program is an umbrella term for guidance which implemented a collection of liability relief options offered by the IRS. These changes were enacted after the great recession of 2008. The program is designed to make it easier for taxpayers to get out from under tax liability and penalties legally. Some options may reduce or freeze the liability you’re carrying. Others make it possible to pay off what you owe in smaller chunks over a period of time.. It offers varying levels of relief and repayment options based on your specific financial situation.
The IRS launched the Fresh Start initiative in 2011 for the purpose of helping more taxpayers to get back in good standing. The program emphasizes facilitating reasonable repayment options over enacting egregious penalties against you. Yes, taxpayers benefit because they may be able to pay off taxes while avoiding liens, levies, wage garnishments, and possibly jail time. The IRS also benefits because it is able to collect “something” instead of nothing from taxpayers, plus the taxpayer has to stay in compliance and file their return timely every year.
Here they Are – The Top 5 Benefits of Using the IRS Fresh Start:
- Offer in Compromise (OIC) – The Fresh Start made it easier for taxpayers to settle their tax liability for only a portion of the total balance.
- Installment Agreement (IA) – The Fresh Start gave taxpayers more options in creating an affordable monthly payment plan.
- Currently Non Collectible (CNC) – The Fresh Start made it easier to qualify for Currently Non Collectible status in which the IRS recognizes that you currently do not have the disposable income to make monthly payments to the IRS. You are protected from levy or garnishment and you don’t have to make monthly payments.
- Penalty Abatement – The Fresh Start provides more options for reducing penalties.
- Peace of Mind – Resolution of your tax issues removes a great deal of anxiety and stress. The Fresh Start Program makes it easier to do just that. With the Fresh Start, Peace of Mind is closer than ever. With the Fresh Start making it easier to resolve your outstanding tax balances, a relaxing night of sleep is closer than ever.
If you want to take advantage of the Fresh Start Program, your best bet is to speak with a licensed tax professional to discuss the options available to you. Using the Fresh Start Program is not easy, the IRS does not make it easy. You’ll need to provide detailed financial information to show the IRS why you believe you qualify for one or more of the Fresh Start options. There’s many other factors that come into play – bankruptcy, active wage garnishments, and tax liens could complicate things, just to name a few.
Do I Qualify for the IRS Fresh Start Program?
First, you should know that the IRS has designed its Fresh Start tax program to be helpful for everyone and anyone owing taxes. That there’s so much variety within the program means that you’ll likely find at least one suitable option for tax relief. However, the complexity of the IRS Fresh Start initiative means you need the help of a licensed tax profession who can help you navigate the rules and regulations associated with the Fresh Start while you work together to explore the specific options that may be available to you.
First, you need to handle any filing issues with your current taxes. In other words, In other words you will need to file any missing or late returns. You also must make sure that your paycheck uses the correct number of withholdings for the current year. Self-Employed and you are required to make your quarterly payments timely. This is the IRS’s way of making sure it can trust you to be accountable for current and future taxes.
IRS Fresh Start Program Qualifications
The IRS Fresh Start tax initiative is generous and inclusive. However, you don’t qualify for all of the programs and the IRS will absolutely not tell you which you qualify for and which you don’t. The IRS wants your money so they do what’s best for them – convince taxpayers to pay them the most amount of money possible no matter if the taxpayer qualifies for any of the Fresh Start programs. In other words, the IRS won’t automatically apply the Fresh Start program to your tax liability just because you qualify. You need to understand which Fresh Start programs you qualify for and have the proper documentation to back up your assertion that you qualify. You’ll need an a tax professional who knows the guidelines inside and out that can help you prove that you can take advantage of the Fresh Start Program. Plus, you don’t want to be messing around without help while the IRS denies your requests for the Fresh Start and asks for more documents 10 times in a row. While you’re doing all that, the IRS charges tax, penalties, and interest until the balance is paid in full, making it absolutely critical to apply and get help as soon as you can.
How Does the Fresh Start Program Work?
The Fresh Start IRS initiative works by making it easier and more affordable for you to settle your liability and avoid penalties. However, the IRS requests a large stack of financial documents proving you qualify. It’s not so easy to convince the IRS that you qualify.
How to Apply for IRS Fresh Start Program
The IRS provides eligibility forms for each relief option included in its Fresh Start program. It’s up to the taxpayer to thoroughly and honestly complete these forms. You can eliminate much of the confusion and stress that can accompany this process by simply getting help from our tax team or any licensed tax professional. A licensed professional can also help to ensure that you’re following all IRS guidelines and applying to the program that’s the best fit for you.
How Can The W Tax Group Help?
The W Tax Group team has helped thousands of people take advantage of the IRS Fresh Start program. We fully understand the details of the program. Our licensed tax professionals can help negotiate the most favorable outcome available. It all starts with a 100% free IRS fresh start initiative consultation. You can request a consultation here or call us at: 866-746-1534