What Is the Fresh Start Program with the IRS?

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If you are dealing with overwhelming tax debt, you might be looking for relief options. A great way to determine which tax debt relief option is right for you is by researching the different types of assistance the IRS provides. One of them is the Fresh Start program.

Our Tampa tax debt relief lawyers explain what the Fresh Start program is and how it can help you.

What is the IRS Fresh Start Program?

The IRS Fresh Start program is a term used to describe the different relief options the IRS offers. The Fresh Start program was created to help taxpayers get out of tax debt and legal penalties.

Many of the relief options in the Fresh Start program help reduce the amount owed or freeze the debt. There are mainly four different types of options included in the Fresh Start program, including:

  • Offer in Compromise (OIC): An Offer in Compromise allows taxpayers to settle delinquent taxes for less than the total amount that is owed.

  • Installment Agreement (IA): The IRS provides taxpayers with installment agreements and payment plans that make it possible to pay off tax debts over time.

  • Currently Non Collectible (CNC): The CNC tax program doesn’t forgive tax debt, but it does halt collections.

  • Penalty Abatement: This option releases taxpayers from penalties.

Who Qualifies for the Fresh Start Initiative?

The Fresh Start program is available for everyone. However, you must be fully current with all tax returns before you can be considered for the Fresh Start program. You must also meet certain requirements depending on the option you want to apply for in the Fresh Start program.

For example, to qualify for an Offer in Compromise (OIC), you must prove that you can’t make ends meet if you pay off your tax debt, so you need them to settle for less than the amount owed.

Not sure if you qualify? Contact our Tampa tax debt relief attorneys today at (813) 295-7648 to schedule a consultation!