The IRS Fresh Start Program:
Is it Right for You?
The Fresh Start program is an IRS initiative that gives certain taxpayers the opportunity to start again and correct past mistakes related to taxes. If you’ve made errors regarding your tax returns in the past, you are probably not eligible. However, if you were unfortunate enough to fall into one of the categories listed below, the Fresh Start Program may be just what you need to get back on track with your finances. If you’re a first-time offender or have had an unfortunate series of events that led to failures when filing your taxes in the past, this article will help you determine whether or not the Fresh Start program is right for you.
What is the Fresh Start Program?
The Fresh Start program is a voluntary program that allows certain taxpayers to correct their tax mistakes from the past while starting with a clean slate. The program is not available to everyone and is reserved only for those who meet certain criteria.
In order to participate in the Fresh Start program, you must:
- Have made errors on your tax returns in the past.
- Be able to prove that you have made an honest mistake.
- Have no intent to deceive the IRS.
- Have more than one tax return that needs to be revised.
Pros of the Fresh Start Program
- Starting fresh
One of the biggest pros of the Fresh Start program is the fact that it allows you to wipe the slate clean and start over with your tax filings. If you’ve been struggling with taxes in the past, you may be eligible for this program and be able to start fresh by having your past returns corrected. - Avoiding criminal penalties
If you’ve made an honest mistake in the past concerning your taxes, there’s a good chance that the Fresh Start program will allow you to avoid criminal prosecution. - Lower fees
The IRS charges a fee for any corrections made to your taxes. If you’re participating in the Fresh Start program, you won’t be charged for these corrections.
Cons of the Fresh Start Program
- No do-overs
If you’re hoping to use the Fresh Start program to file a new set of returns going forward, you may be disappointed. This program allows you to correct past returns, but you won’t be able to file different returns moving forward. - The voluntary nature of the program
The IRS doesn’t force anyone to participate in the Fresh Start program. If you don’t meet the criteria or you refuse to participate in the program, you could face serious consequences. - The stigma of a criminal investigation
The IRS doesn’t publicize the names of those who participate in the Fresh Start program and avoid prosecution. However, you will be required to sign a form stating that you’ve been investigated for tax fraud and have chosen not to be prosecuted.
Conditions of the Fresh Start Program
- You must meet all of the criteria for the Fresh Start program. If you don’t, you won’t be able to participate in the program even if you desperately need to correct your tax returns.
- You must sign a form stating that you have made honest mistakes on your tax returns in the past. You will also be required to state that you were not intending to deceive the IRS when you made those mistakes.
- You must agree to have your past returns corrected. Your past returns will be corrected by IRS agents in an attempt to make the numbers match. You will not be able to file amended returns and make corrections yourself.
Conclusion
Ultimately, the decision to participate in the Fresh Start program is yours. If you are an honest person who has made honest mistakes when filing taxes in the past, this program could be your saving grace. However, you must meet all of the criteria and be sure to discuss your situation with an IRS representative before making a decision. If you have made mistakes in the past when filing your taxes, you may be eligible to participate in the Fresh Start program. This program allows certain taxpayers to correct their past mistakes and start fresh with their tax filings.
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