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What is the IRS Fresh Start Program?

IRS fresh start program

IRS Fresh Start Program

The IRS Fresh Start program shines as a beacon of hope for those facing the challenge of unpaid taxes. It is an initiative by the Internal Revenue Service (IRS) to assist taxpayers who find themselves in financial straits, struggling to settle their tax obligations.  Think of it as a lifeline for individuals and businesses facing tax-related challenges.

Initiatives under the IRS Fresh Start Program

The IRS Fresh Start program encompasses several initiatives designed to alleviate the financial burden on taxpayers.

These initiatives include:

  1. Installment Agreements: If you can’t pay your tax bill in full, you may qualify for an installment agreement, allowing you to pay your taxes over time in manageable monthly installments.
  2. Offer in Compromise (OIC): This program enables eligible taxpayers to settle their tax debt for less than the full amount owed if they can demonstrate financial hardship or other valid reasons.
  3. Temporary Delay in Collection: If you’re experiencing economic hardship, the IRS may temporarily delay collection efforts, offering you some breathing room to get back on your feet.
  4. Tax Lien Withdrawal: In some cases, the IRS may withdraw a tax lien, which can significantly improve your credit score and financial standing.

Eligibility Criteria for the Fresh Start Program

While there are no strict income requirements, the IRS does have specific eligibility standards that must be met to qualify for the program.

Here are the criteria:

1. Prior Tax Returns: To be eligible for the Fresh Start program, you must have filed all required tax returns for the previous three years. Ensuring your tax filings are up to date is an important step in the eligibility process. 

2. Tax Debt Limit: Your total tax debt, including interest and penalties, must not exceed $50,000. This limit is in place to target individuals and businesses with manageable tax debts. 

3. Payment Agreement: As part of the program, you must agree to pay your taxes owed within six years. This provision allows for a reasonable repayment period that suits your financial situation. 

4. Current-Year Tax Payments: It’s crucial that you have made all required estimated tax payments for the current year. This demonstrates your commitment to staying current with your tax obligations.

5. Clean Tax Record: To qualify for the Fresh Start program, you must not have been involved in any tax evasion or fraud activities. A clean tax record is essential for eligibility. 

Understanding and meeting these eligibility criteria is the first step toward finding relief through the IRS Fresh Start program. If you meet these standards, you’re well on your way to securing the assistance you need to regain control of your financial situation.

Conclusion

In the often bewildering world of taxes, the IRS Fresh Start program stands as a beacon of hope for those struggling with unpaid taxes. When paired with the expertise of Priority Tax Relief, the path to financial recovery becomes clear and attainable.

Remember, you don’t have to face your tax challenges alone. Reach out to Priority Tax Relief today and take the first step towards a brighter financial future. With their assistance, you can unlock the door to financial freedom and leave your tax worries behind.

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FAQs

 The simple answer is no. A business and a person are completely separate, thus, any personal tax debts or liabilities should not affect your business.

Tax debt can be an exhausting and complicated thing to deal with on your own. Communicating with the IRS and professionally handling your tax liabilities are just two of the services companies like Priority Tax Relief can offer.

No. The IRS’s Innocent Spouse Relief protects you from paying these additional taxes. However, this does not relieve you from household employment taxes, business taxes, individual joint responsibility payments etc. Priority Tax Relief helps you learn more about innocent spouse relief.

The most popular option to date would be an Offer In Compromise (OIC). At Priority Tax Relief, we help tax relief help become more accessible to taxpayers in need and help them understand how they can qualify for these options.

IRS tax liens are legal claims on your property when you do not settle your tax debts. The IRS usually sends out a notice when no payment has been made after a liability assessment. Find out more about tax liens with Priority Tax Relief.

Yes. Not only can the IRS put a claim on all your current property, tax liens can also affect any property or intangible or tangible assets that you obtain in the future. At Priority Tax Relief, we help you understand federal tax liens and how to communicate with the IRS.

 

Tax levies are the actual seizure of your property and are different from legal claims or tax liens. Settle your taxes before the IRS sends out a notice. Priority Tax Relief helps you understand tax levies and how you can avoid them.

Yes. Not only can they seize physical property but they can also legally take hold of the money in your bank account and other wages. To avoid this from happening, contact Priority Tax Relief now.

Your debt will, unfortunately, continue to grow and you will possibly lose a great number of your assets. It is definitely a scenario we do not wish to see happen to anyone, that’s why Priority Tax Relief makes sure that our help becomes within reach.

Need expert help? Looking to get back on track?