What You Should Know About The IRS Fresh Start Program

The IRS Fresh Start Program is an initiative designed to help taxpayers struggling with tax debt settle their liabilities more easily. Established in 2011, this program aims to provide relief to individuals and businesses facing financial hardship by offering streamlined processes and flexible payment options. Understanding the key features and benefits of the IRS Fresh Start Program can help taxpayers take advantage of available opportunities to resolve their tax issues effectively.

Eligibility Criteria for Installment Agreements

One of the primary components of the IRS Fresh Start Program is the expanded eligibility criteria for installment agreements. Under this program, taxpayers with outstanding tax debt of up to $50,000 may qualify for a streamlined installment agreement without needing a detailed financial statement or intrusive collection actions. This allows individuals and businesses to set up manageable monthly payments and avoid the imposition of liens, levies, or wage garnishments.

Additionally, the IRS Fresh Start Program offers relief to taxpayers struggling to pay their tax liabilities in full. Through the program, eligible taxpayers may qualify for an Offer in Compromise (OIC) to settle their tax debt for less than the full amount owed. To qualify for an OIC, taxpayers must meet specific criteria related to their income, expenses, assets, and ability to pay. However, for those who qualify, an OIC can provide a fresh start and a chance to resolve their tax issues once and for all.

Furthermore, the IRS Fresh Start Program provides options for taxpayers facing financial hardship due to unemployment or underemployment. Through the program, eligible individuals may qualify for a temporary suspension of collection activities, known as Currently Not Collectible (CNC) status. While in CNC status, the IRS will cease collection efforts and refrain from levying bank accounts or garnishing wages, providing temporary relief to taxpayers experiencing financial hardship.

Taxpayers need to understand that participation in the IRS Fresh Start Program requires compliance with all tax filing and payment obligations moving forward. Failure to file tax returns or make timely payments after entering into an installment agreement or OIC can result in the cancellation of the agreement and the reinstatement of collection actions by the IRS.

The IRS Fresh Start Program offers valuable opportunities for taxpayers struggling with tax debt to find relief and resolve their financial challenges. By taking advantage of installment agreements, Offers in Compromise, and Currently Not Collectible status, eligible individuals and businesses can work towards a fresh start and regain control of their finances.

Call Our Chicago Offer in Compromise Attorney Today!

If you’re facing tax debt and need assistance navigating the IRS Fresh Start Program, don’t hesitate to seek help from experienced legal professionals. North Suburban Legal is here to provide you with expert guidance and representation to help you understand your options and achieve the best possible outcome for your situation.

Contact our Chicago Offer in Compromise attorney at North Suburban Legal today at 312-909-6089 to receive your free consultation. Our dedicated team will listen to your concerns, evaluate your case, and provide you with personalized legal advice tailored to your unique circumstances. Let us help you find relief from tax debt and move forward toward a brighter financial future.




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