The Fresh Start Program is an initiative launched by the Internal Revenue Service (IRS) to help taxpayers settle tax issues. The program is open to any taxpayer who owes the IRS $10,000 – $50,000.
The IRS implemented this program for taxpayers to ease the financial burdens that come along with owing the IRS large sums of money, such as liens, levies, wage garnishments, and penalties.
Under the Fresh Start Program, there are three repayment options:
Extended Installment Agreement. This option allows taxpayers to pay off their debt over a period of up to 6 years without the imposition of additional interest and late payment penalties. The IRS also suspends collection actions such as wage garnishments, tax liens, or tax levies.
The amount of the monthly payment is based on the taxpayer’s income and the value of assets.
Tax Lien Withdrawal. A tax lien withdrawal removes the public Notice of Federal Tax Lien against your property. The withdrawal assures that the IRS is not competing with other creditors for your property. A tax lien withdrawal, however, does not remove your liability for paying taxes due. Taxpayers can pay off their debt using a direct debit payment option.
Offer in Compromise. The Offer in Compromise is an agreement between the taxpayer and the IRS that settles a tax debt for less than the total amount owed. The taxpayer must make an appropriate offer based on what the IRS considers the taxpayer’s actual ability to pay.
Note that an OIC can take many months to obtain, and while you wait for acceptance of your offer, you need to continue to make your monthly payments.
Eligibility Requirements for the Fresh Start Program
You may qualify for the Fresh Start Program, if
You are current on all your tax return filings, including prior years
You file timely returns for any future years
Your annual tax balance is $50,000 or less
You are self-employed and have had a 25% drop in your net income
You file a joint return, and your combined earnings are up to $200,000 a year
You file an individual return, and your annual earnings are up to $100,000
Fresh Start Program Assistance at Rockwater Associates
Rockwater Associates can help you navigate your options within the Fresh Start Program to settle your tax debt.
Rockwater Associates has successfully helped thousands of people just like you overcome tax debt, small or large. With decades of experience working with the IRS and every State, we are your best hope of reaching a better deal. Almost everything is negotiable, including back taxes.
If you choose to partner with Rockwater Associates, you will be working with some of the industry’s brightest and most experienced professionals. Our communication, honesty, and transparency in our processes make us the right choice to provide a solution to your tax debt problem. Our number one priority is providing you with a great customer experience.