The Fresh Start Initiative is a program introduced by the Internal Revenue Service (IRS) to provide taxpayers with a new opportunity to settle their tax debts. This program is designed to help individuals and small business owners who are struggling to pay their taxes due to financial difficulties. The Fresh Start Initiative provides many options to taxpayers, including the ability to pay their tax debt in installments, the option to reduce the amount owed through an Offer in Compromise (OIC), and the opportunity to have liens and levies released or withdrawn.
One of the main features of the Fresh Start Initiative is the streamlined installment agreement program. This program allows taxpayers who owe less than $50,000 in back taxes to pay off their debt for up to six years. This program also eliminates the requirement for taxpayers to provide a financial statement, which makes it easier for them to qualify for an installment agreement.
The Offer in Compromise (OIC) program is another key feature of the fresh start IRS program that allows taxpayers to settle their tax debt for less than the full amount owed. The IRS will consider an OIC if it determines that the taxpayer is unable to pay the full amount owed, or if the payment of the full amount would create a financial hardship for the taxpayer.
Benefits of Fresh Start Initiative with the IRS
The Fresh Start Initiative is a program launched by the Internal Revenue Service (IRS) to help taxpayers who are struggling to pay their taxes. The program provides options for taxpayers to resolve their tax debts, including installment agreements and offers in compromise. It also allows taxpayers to request a temporary delay in collection activities if they are experiencing financial hardship.
The benefit of the Fresh Start Initiative is that it helps taxpayers to avoid tax liens, levies, and wage garnishments, which can have a significant impact on their financial stability. Additionally, the program can help to reduce the overall amount owed in taxes by allowing taxpayers to negotiate a settlement with the IRS based on their current financial situation. This can provide much-needed relief to taxpayers who are facing financial challenges and struggling to pay their tax debts.
The Fresh Start Initiative is a valuable resource for taxpayers who are struggling with tax debt. It provides a range of options to help them get back on track with their tax payments, reduce their tax debt, and avoid the negative consequences of tax liens and levies. If you are facing tax debt, it’s important to consult with a tax professional or contact the IRS to explore the options available to you through the Fresh Start Initiative.