The IRS Fresh Start Program: Is it Right for You?
The IRS Fresh Start initiative expanded access to tax-debt payment options and changed certain lien procedures. Available relief depends on the rules of each option and the taxpayer’s circumstances.
What is the Fresh Start Program?
Fresh Start refers to IRS collection-policy changes involving installment agreements, offers in compromise and liens. Current requirements should be checked for the specific option being considered.
When reviewing tax-relief options:
- Review outstanding balances and notices.
- Bring required tax returns up to date.
- Review current payment obligations.
- Compare payment and settlement options.
Pros of the Fresh Start Program
- Monthly payments
An installment agreement may let eligible taxpayers pay over time. - Potential settlement
An offer in compromise may settle an eligible debt for less than the full balance. - Lien procedures
Certain taxpayers may request withdrawal of a filed tax-lien notice.
Cons of the Fresh Start Program
- Eligibility varies
Each option has separate requirements and IRS review. - Costs may continue
Payment plans generally include interest, penalties and applicable setup fees. - Compliance matters
Required returns and current tax payments must remain up to date.
Conditions of the Fresh Start Program
- There is no single Fresh Start application that corrects past returns or guarantees relief.
- Review the current instructions for the payment plan, offer or lien request involved.
- Eligibility depends on the option selected and the taxpayer’s documented circumstances.
Conclusion
The appropriate option depends on the balance owed, ability to pay and filing history. Family Tax Relief can help review available options.
Official references: IRS Fresh Start history · Current IRS payment plans · Offer in compromise.
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