The IRS provides a series of services under the Fresh Start program to assist taxpayers who are having trouble making their tax payments. These services offer payment schedules, quicker processes for filing taxes, etc. Yet, if you owe taxes and are struggling to pay them, the IRS Fresh Start program can assist you. For those who are unable to pay their debts in full, the IRS New Start Program is fantastic.
The installment agreement, which lets you pay your debt throughout up to six times, is probably the most popular choice under the fresh start IRS program. The installment agreement is only available to taxpayers with back taxes of $50,000 or less. If you owe more than this, you can reduce your debt until it reaches the acceptable amount to be eligible for the provision. Also, you must have submitted all required federal tax returns and expected payments to be eligible for an extended installment agreement.
Offer In Compromise
You can use an OIC to settle your taxes due for a smaller amount than what you owe. The IRS often won’t accept a request for an offer in compromise if you have the resources to pay your tax debt in full, either through an installment agreement or by assets that could settle the bill. You must have completed all required federal tax returns and projected payments to be eligible for an OIC.
Tax Lien Relief
The IRS will not issue a Notice of Federal Tax Lien on tax debt amounts below $10,000 under the Fresh Start initiative because the threshold amount for filing a tax lien notice was raised from $5,000 to $10,000. You must sign a 60-month direct installment arrangement to get the IRS to release a Notice of Federal Tax Lien (NFTL).
The ability to sign into a Direct Deposit Installment Agreement (DDIA) to prevent the IRS from placing a lien on your property is a second component of the Fresh Start Initiative to tax liens. You cannot have had any prior lien withdrawals except for a lien withdrawal related to an incorrect NFTL filing.
The Fresh Start Program is another way for indebted taxpayers to pay their taxes in full without getting into financial hardships.