Fresh Start Initiative IRS: What is it and How Do I Participate?

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IRS Fresh Start Initiative

If you are a US taxpayer or have IRS tax debt, you may be eligible for the IRS Fresh Start Initiative. This program allows people to make a one-time payment of their IRS tax debt and avoid penalties and interest.

This blog post will introduce what the IRS Fresh Start Initiative is about and how it works.

Take Full Advantage Of The IRS Fresh Start Initiative

The IRS Fresh Start Initiative is an excellent opportunity for taxpayers struggling to pay their IRS tax debt.

What Is the IRS Fresh Start Program?

The IRS Fresh Start Program is a catch-all phrase for the IRS’s debt relief alternatives. The objective of the program is to make it easier for tax delinquents to legally escape their monetary difficulties.

Depending on your situation, you could be eligible for one or more of these programs. Others make it possible to pay off what you owe in smaller amounts over time. The Fresh Start Program is made up of tax code modifications.

It provides a variety of relief and repayment options based on each applicant’s unique financial circumstances.

The IRS began the Fresh Start program in 2011 to assist more taxpayers regain good status.

The program puts a premium on providing customers with affordable repayment alternatives rather than imposing fines. Yes, taxpayers benefit from being able to pay off tax debts while avoiding liens, levies, wage garnishments, and jail time.

The IRS gains since it may now collect something rather than nothing from taxpayers. Fresh Start includes the following as part of its definition

  • Offer in Compromise (OIC). 
  • Installment Agreement (IA). 
  • Currently Non-Collectible (CNC). 
  • Penalty Abatement.

It’ll take time to figure out which one is ideal for you. The IRS will want thorough financial records to show that you qualify for one of these relief choices.

The Credit Pros

There are several things that may prevent you from receiving your refund on time. Factors like bankruptcy, active wage garnishments, and tax liens might make it more difficult. Continue reading to see if the IRS will give you a fresh start.

Do I Qualify for the IRS Fresh Start Program?

First, you should be aware that the IRS has established its Fresh Start tax program to benefit everyone. Because there is so much variation within the scheme, you’ll almost certainly discover at least one suitable debt relief channel.

However, the IRS Fresh Start initiative’s complexity means that working with a tax professional is essential when determining what you may get.

The first hoop you must jump through is in regards to current tax returns. Before you may be accepted into the Fresh Start program, the IRS wants you to be completely up-to-date on all of your tax returns. You’ll also need to have enough withholdings calculated for the current year. This is the IRS’s way of ensuring that taxpayers

IRS Fresh Start Program Qualifications

The IRS Fresh Start tax program is broad and inclusive. There are, however, some essential facts to be aware of. Here’s what it takes to meet the criteria:

  • Individuals who work for themselves must show a loss of 25 percent in income.
  • Joint filers may not earn more than $200,000 per year.
  • Single filers may not earn more than $100,000 per year. Before the end of the year, your tax balance must be less than $50,000.

The bottom line is that you must apply for the option you believe is appropriate for your case. Because you qualify, the IRS will not automatically apply Fresh Start to your tax debt. Until the balance is paid in full, interest is charged on tax, fines, and interest, so it’s critical to apply or seek assistance as soon as possible.

How Does the Fresh Start Program Work?

The IRS’s Fresh Start IRS program lets you settle your debt and avoid penalties. To begin, you must submit the required forms and documentation to the IRS. You’ll then create a strategy for future payments, such as monthly payments, lump-sum payments, or deferred payments.

How to Apply for IRS Fresh Start Program

The IRS has various relief options within its Fresh Start program, and each one comes with its own eligibility form. It will be your responsibility to correctly and honestly fill out these forms.

You may substantially decrease the confusion and stress that comes with the procedure by simply requesting help from a tax professional. A specialist can also help you in ensuring that everything is accurate.

How tax professionals can help you

First, they’ll identify any of the potential penalties and interest charges that you need to be on the lookout for between now and when you’re approved for a relief option.

They’ll then go through the specifics of your problem with you to determine which Fresh Start tax program option is best for you.

After you’ve provided the necessary information, they’ll walk you through every stage of the application procedure in order to boost your chances of acceptance. Because they speak the IRS language, they can assist clients with all of the intricacies of the application process.

How Can We Help?

We connect you with tax professionals who have been helping people take advantage of the full scope of the IRS Fresh Start program since it was first launched back in 2011.

Tax professionals are also available to assist you throughout your tax process, ensuring that you remain in full compliance after you’ve been accepted into the Fresh Start program. This may include assisting you with filing your taxes on time in order to avoid breaking your contract.

Give a call today to learn more about how you may get significant tax relief this year through the IRS Fresh Start program.