The IRS Fresh Start Program is designed to lend flexibility to unintentional tax offenders. And while there are many positive attributes to the program, talk around it has led to some common misconceptions about what the program can and can’t do for you. In this article, we'll debunk some common myths surrounding the IRS Fresh Start Program and leave you better informed on your options going forward.
What is the IRS Fresh Start Program?
The IRS knows that not everyone who falls into tax trouble is a serious, intentional offender, and that's why programs like the IRS Fresh Start are available. It’s designed as a flexible set of policies to aid non-serial offenders, and it could be the perfect relief option should you find yourself eligible.
The Fresh Start Program allows taxpayers with back taxes to enter an agreement that stretches out payment over a series of months, though no more than 5-6 years. To qualify, you’ll need to provide direct debit payments and:
- Be able to pay off your tax obligation in a resolution-specific amount of time
- Be in tax trouble with the IRS
- Have up-to-date tax filings through the most current year
To truly understand if you’re eligible, get in contact with a trusted tax relief advocate. You can read more about the IRS Fresh Start Program here.
How does the IRS Fresh Start Program Help Offenders?
The IRS Fresh Start Program saw its launch in 2011 to provide relief to recession-affected tax offenders. The inaugural program allowed for offers-in-compromise, partial pay installment agreements, and guidelines for different pay arrangements that could change over time.
If you’re eligible for the program and enter it, your arrangement with the IRS won’t change once it’s agreed to, as long as no other balances are accrued.. You’ll have peace of mind knowing that there will be no surprise levies, liens or garnishments. You’ll be able to pay back your balance in a way that makes sense for your personal financial situation.
Myth #1: The Program Doesn’t Exist
This might seem strange at face value, but of the more than 10 million accounts flagged each year, many don’t know that the IRS Fresh Start Program exists, or they immediately write themselves off from being eligible.
Upon receiving notice of an offense and letting the emotions settle, your first action should be calling a tax relief specialist. They’ll review your case, understand the facts surrounding it, and then sit down with you to discuss your best options — including whether or not you’re eligible for the IRS Fresh Start Program. Working with a tax relief specialist ensures your application is submitted correctly, completely and minimizes the risk of wasting your time. Be mindful that dealing with the IRS is a notoriously difficult process.
Myth #2: You Can Erase Your Tax Problems Completely
If you’re willing to open a dialogue with the IRS through a trusted tax relief advocate, you’re taking a step in the right direction, but no matter how many steps you take, your tax issues will never be completely erased, even if you’re enrolled in the IRS Fresh Start Program.
Fresh Start is an opportunity to start anew, and it should be treated as such. This is your chance to make things right with the IRS and show that you’re taking the offense seriously. Because they’re lending you credible flexibility, they want to see that you’re being compliant going forward. You’ll need to show compliance until your agreement is successfully completed while keeping up with your payments. The timeframe for this depends on the Fresh Start resolution you enter.
Myth #3: Businesses Are Not Eligible For the IRS Fresh Start Program
Businesses are certainly eligible for the IRS Fresh Start Program — especially if you’re self-employed. Different businesses qualify for different types of help, so working with a professional is vital here.
It’s worth mentioning that the Fresh Start Program is not actually a single program — it’s a collection of policies and actionable plans that the IRS offers. This is why working with a tax relief advocate is so important — they’ll be able to situate you in front of the set of policies that provide you the most relief and make the most sense for the circumstances you find yourself in.
Learn More About the IRS Fresh Start Program
The IRS Fresh Start Program is occasionally mentioned in passing — on the radio, or through an advertisement — but never really delved into. In some ways, navigating the correct solution is as complex as understanding the tax issues you might be dealing with, and this is why a professional can help.
Staying informed and exploring and understanding the range of options through a trusted professional is your best bet in reaching a deal that makes sense for you or your business. Even if you think you might not qualify for the IRS Fresh Start Program, a tax relief expert can still help.
Tax Relief USA has wide-ranging expertise on filing offers-in-compromise, setting up installment agreements, and navigating the ins and outs of the IRS Fresh Start program. We work directly with the IRS every day on behalf of our clients, and we’d be happy to work with the IRS for you, so you don’t have to.
If you think you could benefit from Fresh Start or if you need an expert tax opinion for your situation, please contact Tax Relief USA today for a free tax consultation.