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5 Common Mistakes Taxpayers Make When Applying for the IRS Fresh Start Program

Written by Tax Relief USA | Jul 29, 2021 3:15:00 PM

When you're able to confirm your eligibility for the IRS Fresh Start Program, you’ll want to work with a trusted tax relief expert to get you through the process of applying. A single mistake in filing could be the difference between receiving the supportive relief you deserve, and a full due balance from the IRS.

 

What Are the Risks of Making Mistakes When Applying?

 

The short answer is that there’s a lot at risk when applying to the IRS Fresh Start Program. Not only can you be denied relief, but you might extend the statute of limitations (SOL) on the expiration date of your tax liability in a way that’s unfavorable to you. 

 

It’s likely that you're eager to move past your tax trouble, but this is your second chance at getting things right. Everything needs to be perfect. After you determine your eligibility, take a look at the requisites that need to be in place alongside it, before you apply. These include:

  • All of your tax returns filed
  • Being compliant with estimated taxes
  • Not being the subject of an active audit
  • Having an assessed tax liability

If you were to file with any of these conditions unmet, you’d face an automatic rejection from the program. Keep in mind that when you submit an application, you could extend the amount of time the IRS has to collect on your owing for as long as it takes the application to be reviewed and accepted or denied. This could be anything from a few months to a few years. If you make a mistake and have to resubmit, you could extend it even longer.

 

Common Mistakes Individuals Make When Applying to the IRS Fresh Start Program

 

Mistakes happen all the time, but they can’t happen here. Deserving individuals are rejected by the Fresh Start Program every year because the process was more difficult than they anticipated. 

 

If you correctly waited for your due balance to be assessed, adding another charge might not be at the top of your to-do list — but hiring a tax professional is an investment in securing a favorable outcome with the IRS. 

 

Here’s a look at the mistakes we see most often: 

  • Not taking advantage of all breaks: Understanding what qualifies as a break and what doesn’t is critical when applying for the Fresh Start Program. All possible breaks need to be taken advantage of.
  • Not having proof of hardship for a personal financial situation: A tax relief professional understands how to iterate a case of financial hardship to the IRS. 
  • Not having adequate documentation: Providing the right documentation in the right places is paramount to the application process. 
  • Lying to the IRS: This will result in your application being automatically disqualified from consideration. Don’t expect the IRS to work favorably with you if you are caught being dishonest.

Being dishonest or not completely forthcoming with all your information is a major offense. Examples of this are feigning hardship or hiding assets (like a property or timeshare). Do not lie to the IRS. A tax professional might not be able to help you if you do.

 

I’m Eligible for the Fresh Start Program. Now What?

 

By way of eligibility requirements, if you find yourself eligible, you’re not a serious, serial offender. So, the question becomes how do you show that you deserve a Fresh Start? 

 

As the IRS has heard all kinds of stories as to why someone should gain entrance to the Fresh Start Program, determining the facts that are most pertinent to your case is best left to a professional who works with the IRS daily. They will be able to coordinate information and take advantage of all the “breaks” available to you (e.g. high-cost medical bills) and ensure that your documentation is adequate and timely — an important factor that will reduce your chances of being garnished or levied

 

If you have a feeling you’re in tax trouble and might be eligible for the Fresh Start Program, calling a tax relief professional is the best next step.

 

Contact a Tax Relief Professional for Help

 

We said it before and we’ll say it again — this is your second chance to make things right with the IRS: Don’t waste it. 

 

Peace of mind and the confidence of knowing that your application has been overseen by a tax professional should drive the pursuit of your application. 

 

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