What Is The IRS Fresh Start Program? What You Need To Know

If you’re dealing with tax debt, the IRS Fresh Start Program might be the solution you’ve been searching for. This initiative by the IRS was designed to make it easier for individuals and small businesses to pay back taxes and get back on track financially. Whether you’re struggling to meet tax obligations or overwhelmed by penalties, the Fresh Start Program offers a pathway to relief.

In this guide, we’ll break down how the program works, who qualifies, its benefits and how CuraDebt can support you in your journey toward financial freedom.

Do You Qualify?

Qualifying for the IRS Fresh Start Program depends on your tax situation and financial standing. Here’s a breakdown of the basic eligibility requirements:

• Tax Debt Threshold:
  Individuals typically qualify if they owe $50,000 or less in tax debt. For small businesses, the threshold is higher, but they must demonstrate a significant hardship in meeting their tax obligations.

• Filing Compliance:
  Applicants must have filed all required tax returns. Missing or incomplete filings may disqualify you from participating.

• Ability to Pay:
  The IRS will evaluate your income, expenses, and assets to determine whether you genuinely cannot pay your tax debt in full.

• Payment History:
  If you’re currently in an installment agreement with the IRS, you must be up-to-date with payments to qualify.

To find out if you meet these qualifications, CuraDebt offers a free consultation to assess your eligibility and guide you through the process.

What are the benefits of an IRS Fresh Start Program?

• The IRS Fresh Start tax program can help taxpayers who owe much more than they can afford to pay. Taxpayers who are considered eligible can significantly reduce their federal tax debt; in some circumstances, they may be able to reduce 90% or more of what they owe.

• The IRS Fresh Start program is an approach to achieving tax debt relief while avoiding a tax lien or levy.

• The Fresh Start Program will put you in good standing with the IRS and you will be able to maintain or improve your credit score.

What are the four main program options available through the IRS Fresh Start Program?

The IRS Fresh Start Program aids in tax relief through four main program options such as installment agreements, offer in compromise, currently not-collectible status, and penalty abatement.

1. Installment Agreements

The most popular program of the Fresh Start Program is an Installment Agreement. An Installment Agreement is a payment plan, where the taxpayer pays off their debt through monthly installments to the IRS. A benefit of setting up an installment agreement is that you will no longer receive collection letters.

2. Offer in Compromise (OIC)

Another option of the IRS Fresh Start Program is an Offer in Compromise (OIC). This option allows qualified taxpayers to make a settlement for a fraction of what they owe. Although an Offer in Compromise is the best option that is offered through the Fresh Start Program, there are certain eligibility guidelines that taxpayers must meet. 

3. Currently Not Collectible Status

Unlike the other Fresh Start tax programs, Currently Non-Collectible is a status. This status does not remove tax debt, but it does put a hold on collection activities. This status is not permanent, so a taxpayer must be prepared to seek a tax relief resolution while they are under the Currently Not Collectible Status. This option is eligible for taxpayers who are currently experiencing financial hardship.

4. Penalty Abatement

When a taxpayer fails to file or fails to pay their taxes, they can accrue penalties that increase the debt that they must repay. If you have significant penalties with the IRS, there is a chance that you may be eligible for a Penalty Abatement, where the IRS will forgive and deduct the penalty off of what you owe. 

What People Are Saying Across Platforms

Many people turn to online forums like Reddit or Quora to share their experiences and gather insights about the IRS Fresh Start Program. These platforms can offer valuable firsthand accounts and tips from others who’ve navigated similar situations.

To better serve our clients, CuraDebt reviews these discussions to understand common concerns and trends, ensuring we provide the most up-to-date and relevant advice.

Do You Have Tax Debt?

If tax debt is causing you stress, CuraDebt is here to help. Our experienced team specializes in assisting individuals and businesses with resolving their financial challenges. By taking advantage of our free consultation, you can:

• Gain a clear understanding of your options.

• Receive expert advice tailored to your situation.

• Take the first step toward a debt-free future.

Contact us today to learn how we can assist you in leveraging the IRS Fresh Start Program to achieve financial stability. Here is what our clients have to say about us:

Conclusion

The IRS Fresh Start Program is a lifeline for those burdened by tax debt, offering manageable solutions like reduced penalties, installment agreements, and offers in compromise. With the right guidance, you can use this program to regain financial stability and peace of mind.

At CuraDebt, we’re committed to helping you every step of the way. Take advantage of our free consultation to explore your options and start your journey toward a brighter financial future.

Don’t let tax debt hold you back. Contact CuraDebt today!