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IRS Fresh Start Program

IRS Fresh Start Program

What Is The IRS Fresh Start Program

While the federal Internal Revenue Service may be one of the world’s largest debt collection agencies, the IRS Fresh Start Program makes it easier for taxpayers to pay back taxes. This expansion to existing programs allows delinquent taxpayers to settle their tax bills and pay back monies owed through a payment program or settlement process. It allows more opportunity for taxpayers to get back on the right side of things with their taxes and the IRS. The expanded IRS Fresh Start Program has a number of effects that are critical for average taxpayers.

Benefits Of The IRS Fresh Start Program

First, the IRS generally must now go after cases with a tax lien when the amount is over $10,000. Tax liens can be particularly damaging because it allows the IRS to essentially freeze accounts of a taxpayer and seize any cash balance available. This can include accounts receivable as well, monies a person might be expecting to use to pay bills and live on, such as wages from employment. However, the change is not absolute, so it doesn’t mean that folks can just rack up a tax bill of $9,999 and forget about any lien concerns. It can still happen.

Second, for those who owe tax debts up to $50,000, the IRS fresh start program allows for a streamlined installment agreement to be approved, giving the taxpayer 72 months or 6 years to pay down a given tax debt to the IRS. This expanded settlement approach is powerful for the taxpayer because it can suspend the tax lien damage, noted above, and give taxpayer breathing room to manage and pay down outstanding tax debt.

Larger Debts Are Manageable

For those who owe more than $50,000 or are unable to pay their debts completely, the Offer in Compromise option is supported and expanded by the IRS Fresh Start Program and is another option for resolution. Installment agreements are still possible, but the IRS will want to see quite a bit of paperwork, including a financial statement and one of two forms: either the Collection Information Statement, Form 433-A or Form 433-F.

For those who can only pay a partial amount, the crux of the program depends on whether the IRS believes the amount offered can be paid and collected in a reasonable amount of time. While the IRS has been directed to expand the Offer in Compromise option to more taxpayers, it has the option to deny a settlement if the IRS review concludes the taxpayer can actually pay the bill owed in full in installment payments during the collection statute of limitations or as a lump sum.

Technical Assistance Is Critical With The IRS Fresh Start Program

Seeking assistance through the Fresh Start program is doable, but the steps can still be quite complicated. This is why expert help in preparing and communicating with the IRS is critical. The IRS has no obligation to show taxpayers how to use the IRS Fresh Start program, only to process and honor applications once received. However, Samaritan Tax Relief can help. Our team of enrolled agents provides expert tax solutions and guidance as well as invaluable communication with the IRS. Samaritan Tax Relief agents are well versed in helping taxpayers who live abroad as well.

Don’t let the IRS make its point about a tax debt by filing a Notice of Tax Lien. Get your problems solved the right way with the right help!

At Samaritan Tax Relief, we put our clients first, providing them with superior service for a reasonable fee.

If you are ready to hire a qualified tax professional to handle your problems with the IRS, contact Samaritan Tax Relief today to get help with your IRS Fresh Start Program request for resolution!

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Samaritan Tax Relief is a team of Enrolled Agents with over 25 years of experience focusing on US tax resolution services. We maintain this tax blog where all articles are written by Enrolled Agents. Our main objective is to educate US taxpayers on their tax responsibilities and the selection of a tax professional to resolve their tax problem.
When looking for a tax professional, choose carefully. We recommend that you hire a credentialed tax professional such as Samaritan Tax Relief that is an Enrolled Agent (America’s Tax Experts).

Randall Brody is an enrolled agent, licensed by the US Department of the Treasury to represent taxpayers before the IRS for audits, collections and appeals. To attain the enrolled agent designation, candidates must demonstrate expertise in taxation, fulfill continuing education credits and adhere to a stringent code of ethics.

Every effort has been taken to provide the most accurate and honest analysis of the tax information provided in this blog. Please use your discretion before making any decisions based on the information provided. This blog is not intended to be a substitute for seeking professional tax advice based on your individual needs.


Published by Randall Brody
Updated: November 14, 2016

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