IRS Fresh Start Program
We’ve helped thousands of clients save millions of dollars by lowering their IRS or State balances. If you’re struggling to pay taxes, the IRS Fresh Start Forgiveness program could offer relief.
Check your eligibility for the IRS Fresh Start Forgiveness Program.
Navigating IRS debts can be daunting, especially when considering full repayment without excessive penalties or interest. Luckily, the IRS Fresh Start Program offers a solution, allowing taxpayers to settle their debts conveniently.
Explore the IRS Fresh Start Forgiveness Program
This program is specifically designed to facilitate manageable repayment of significant tax debts over six years. It ensures convenience through monthly payments tailored to the taxpayer’s current income and liquid assets. Importantly, the program aims to eliminate additional burdens such as interest, penalties, tax liens, asset seizures, or wage garnishments.
How Does the IRS Fresh Start Program Operate?
You can begin the repayment process under the Fresh Start Program if your IRS tax debt is up to $50,000, selecting from three available repayment plans. Originally introduced in 2008 and expanded in 2012, the program assists individual taxpayers and corporate entities with tax debts within this threshold.
Moreover, the IRS Fresh Start Program acknowledges the challenges taxpayers face, such as unemployment. It offers relief by waiving penalties for those unemployed for more than 30 days and allowing eligible individuals to request a six-month extension to file and pay taxes without IRS penalties.
Understanding Repayment Options under the IRS Fresh Start Program
As previously mentioned, the IRS Fresh Start Program offers three repayment options designed to facilitate the convenient settlement of tax debts while protecting debtors from associated penalties and interests.
1. Extended Installment Agreement
The Extended Installment Agreement is the primary repayment option for taxpayers owing up to $50,000 to the IRS. This plan allows defaulting taxpayers to spread their payments over six years. During this period, IRS collection activities such as asset seizures, tax liens, and wage garnishments are suspended. The monthly payment amount is based on the taxpayer’s income and the value of their liquid assets.
2. Offer in Compromise (OIC)
Although less common than the Extended Installment Agreement, the Offer in Compromise (OIC) is a viable option for taxpayers seeking to settle their IRS debts. This plan involves negotiating with the IRS to settle the tax debt for less than the original amount owed. Successful acceptance of an OIC often hinges on the taxpayer making a reasonable offer supported by a thorough financial assessment. Working with a tax professional can significantly enhance the chances of an OIC being approved promptly.
3. Tax Lien Withdrawal
Under this option, taxpayers can pay off their tax debt in full through a direct debit repayment plan. After setting up the direct debit repayment, taxpayers can formally request in writing to have the tax lien withdrawn from their records. Successful withdrawal ensures that these debts are not reported to credit agencies.
Applying for the IRS Fresh Start Program
The IRS provides straightforward guidelines for applying to the Fresh Start Program, but it’s essential to ensure all past and current tax returns are accurately filed to qualify. Additionally, applicants must commit to filing future returns promptly once enrolled in the program.
To apply, taxpayers can visit IRS.gov and use the Online Payment Agreement tool to select their preferred repayment option. Alternatively, they can fill out and submit IRS Form 9465 available on the website.
For a smoother enrollment process and comprehensive support, consider enlisting the assistance of Tax Review Solutions. Our team not only assists with filing back taxes but also determines the optimal repayment plan based on your individual circumstances. We handle the preparation and submission of all necessary financial documentation to facilitate a successful application.
Settling substantial tax debts can significantly improve your financial situation. The IRS Fresh Start Program offers a flexible path to resolving tax obligations at your pace. For expert guidance throughout the Fresh Start Program application process, contact Tax Review Solutions today. We’re here to support you from start to finish, ensuring your financial freedom is within reach.