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Do You Qualify For The IRS Fresh Start Initiative?

Do You Qualify For The IRS Fresh Start Initiative?

By on Jul 15, 2019 in Tax Debt | 0 comments

The IRS Fresh Start initiative expanded several programs to help taxpayers struggling with unpaid tax debt as a result of the 2008 worldwide financial crisis. Some changes included the IRS increasing the threshold for filing a notice of federal tax lien from $5,000 to $10,000. Also, taxpayers are now allowed to obtain a lien withdrawal once their balance is paid in full or under $25,000 plus they must agree to direct deposits from their checking account for their installment payments.

This is an important change since having a lien can hurt a taxpayer’s ability to obtain loans, obtain credit, or sell a property. This is why it matters, but let’s go back and understand what it is.

What Is The Fresh Start Initiative?

First known as the Fresh Start Program, the Fresh Start Initiative is not actually a program. It was simply a series of changes to current IRS Collection procedures and policies as outlined above designed to help both individual taxpayers and small businesses attempting to settle an overdue tax liability. In theory, the Fresh Start Initiative has features that make it easier for taxpayers to pay back their outstanding balances and avoid tax liens, or have existing liens withdrawn.

How Long Has The IRS Fresh Start Initiative Been In Place?

The 2008 economic crisis led to record numbers of unemployed Americans. In 2011, the IRS implemented the first of several programs to assist struggling taxpayers and it underwent some growth back in 2012. Therefore these programs offer collection alternatives to help resolve tax debt. The two major tax debt payment plans that were simplified under the Fresh Start Initiative include the Installment Agreement and the Offer in Compromise program. Altogether, these alternative options are known as the Fresh Start Initiative.

How To Qualify For IRS Fresh Start Program?

To qualify for the IRS Fresh Start Program there isn’t one set of requirements – it depends on the tax relief program you choose. The following are the general requirements most tax relief applicants must meet.

Be warned that just because you qualify for a tax relief program doesn’t mean you should apply for it. Sometimes tax relief programs can cause more harm than good because of the stipulations attached. An example of this is the Fresh Start Program and how, depending on your situation, you may be required to agree to extend the 10-year statute of limitations on tax collections or provide self-incriminating financial information. Before doing anything, contact Success Tax Relief to help you decide which tax relief measure is best for you.

Here are some of the qualifications for tax relief under the IRS Fresh Start Program:

  • Prove you do not have the money or assets to pay your tax debt.
  • File all the tax returns you’re legally required to file.
  • Make all required estimated tax payments for the current year if you are a self-employed worker or small businesses owner.
  • Make all required federal tax deposits, if you own a business with employees.
  • Not in an open bankruptcy proceeding.

Individual tax relief programs have additional requirements. For example, when applying for a streamlined installment agreement you must owe $50,000 or less. Or to qualify for an offer in compromise, you must provide detailed financial information by completing IRS Form 433A.

To learn more about who qualifies for tax liens relief, penalty abatement, installment agreements, and offers in compromise under the IRS Fresh Start Program, contact Success Tax Relief today!

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