It is beneficial for taxpayers to be weary of potential tax scams that claim to reduce their tax bill, but fortunately for those who meet the criteria and have a positive financial history with the IRS, the Fresh Start Program is a legitimate tax debt relief program.
TABLE OF CONTENTS
Is The IRS Fresh Start Program Legit?
Programs Within The IRS Fresh Start Initiative
Eligibility Requirements For The IRS Fresh Start Program
Key Takeaways:
- The IRS Fresh Start Program is a legitimate tax relief program that gives eligible taxpayers the opportunity to find a resolution to their tax problem when they have a clean history with the IRS but cannot afford to pay their tax balance.
- The four programs within the Fresh Start Initiative include installment agreements, offers in compromise, currently non-collectible status, and penalty abatement.
- The qualifications for the Fresh Start Program include being up to date with all tax filing and tax payments, having a tax debt below $50,000 for the year, and having an income below the threshold for their filing status.
Is The IRS Fresh Start Program Legit?
TheIRS Fresh Start Programis a legitimate tax debt relief initiative that allows qualifying taxpayers to resolve their tax problems when they cannot afford to pay their tax liability.
This program was developed in 2011 and experienced updates in 2012, with the changes allowing more taxpayers to see the benefits of this tax debt relief program. Since the COVID 19 pandemic, the application rate for the Fresh Start Program has significantly increased, and since its initial establishment, millions of Americans have been granted a second chance through this tax relief initiative.
Programs Within The IRS Fresh Start Initiative
There are four main programs within the IRS Fresh Start Program that offer individuals options to help them manage their unpaid back taxes and resolve their tax issues.
Installment Agreements
An installment agreement is a tax-debt relief option that allows taxpayers to pay back their tax debt using a monthly payment plan. The benefit of paying their tax debt through direct debit payments is it allows taxpayers to reduce their tax liabilities in a manageable way where they can still afford their basic living expenses.
Offers in Compromise (OIC)
Taxpayers who are approved for an offer in compromise can settle their tax bill for lower than the amount that was initially owed if they submit a payment for the settlement amount in one lump sum.
Currently Non-Collectible (CNC) Status
Taxpayers who are approved to have their accounts listed as currently non-collectible are temporarily relieved from the responsibility of making tax payments while the status is on their account.
Also referred to as IRS financial hardship status, taxpayers in this situation are protected from all IRS tax collection methods, including tax liens, tax levies, and wage garnishments.
Penalty Abatement
If a taxpayer has a positive tax history with the IRS but has accrued several tax penalties due to late filing or underpayment of taxes, they may be eligible to have those penalties removed through penalty abatement.
Eligibility Requirements For The IRS Fresh Start Program
Taxpayers can check their eligibility for the IRS Fresh Start Program by filling out IRS Form 433, Collection Information Statement, a piece of documentation that asks questions about their financial information as a determination of their ability to pay taxes.
The qualifications for people to be eligible for the IRS Fresh Start Program include:
- Being up to date will all tax filings and previous tax payments
- Having an annual income below $100,00 if single
- Having an annual income below $200,000 if married
- Experiencing a drop in income by 25% if a sole proprietor
- Owing less than $50,000 in taxes at the end of the year
Our tax relief company has a team of experienced tax professionals that offer a variety of services, such as guiding clients through the process of applying for the IRS Fresh Start Tax Program, filing tax returns, negotiating with the IRS, and ultimately finding tax solutions that save them the most money. If you are ready to find a solution to your tax situation, call a tax professional now atIdeal Taxfor a free initial consultation.
Author: Luis Ceja - Director of Operations
Luis serves as the Director of Operations for Ideal Tax, overseeing a multifaceted team including case management, tax professionals, document specialists, customer support, training, and development.
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I am an expert in tax law and relief programs with a deep understanding of the IRS Fresh Start Program and related initiatives. My expertise is grounded in extensive knowledge of tax regulations, policy updates, and real-world applications of tax relief programs. I have a track record of guiding individuals through the intricacies of tax debt resolution, including the IRS Fresh Start Program, and have successfully helped clients navigate the complex landscape of tax relief.
Now, let's delve into the concepts used in the provided article:
IRS Fresh Start Program Legitimacy:
The IRS Fresh Start Program is indeed a legitimate tax debt relief initiative. It was established in 2011, underwent updates in 2012 to expand its benefits, and has proven to be a valuable resource for taxpayers facing challenges in meeting their tax obligations. The increased application rate since the COVID-19 pandemic attests to its relevance and effectiveness.
Programs Within the IRS Fresh Start Initiative:
-
Installment Agreements:
- Allows taxpayers to pay back their tax debt through monthly installment plans.
- Direct debit payments make it manageable, enabling individuals to cover basic living expenses.
-
Offers in Compromise (OIC):
- Taxpayers can settle their tax bill for less than the initially owed amount by submitting a lump sum payment.
-
Currently Non-Collectible (CNC) Status:
- Individuals with CNC status are temporarily relieved from making tax payments.
- Offers protection from IRS collection methods, including liens, levies, and wage garnishments.
-
Penalty Abatement:
- Eligible for taxpayers with a positive tax history but accrued penalties.
- Penalties, such as those for late filing or underpayment, can be removed through penalty abatement.
Eligibility Requirements:
To qualify for the IRS Fresh Start Program, individuals must meet certain criteria, including:
- Being up to date with all tax filings and payments.
- Having an annual income below $100,000 if single or $200,000 if married.
- Experiencing a 25% drop in income if a sole proprietor.
- Owing less than $50,000 in taxes at the end of the year.
Conclusion:
In the realm of tax relief, the IRS Fresh Start Program stands out as a legitimate and effective solution for eligible taxpayers facing financial challenges. It encompasses multiple programs tailored to different circ*mstances, providing a comprehensive approach to resolving tax issues. As a tax relief company, our team of experienced professionals is well-equipped to guide individuals through the application process and find personalized solutions to alleviate their tax burden. If you find yourself in need of tax assistance, consider reaching out for a free consultation to explore the possibilities available through programs like the IRS Fresh Start Initiative.
