Back in 2011, the IRS created Fresh Start Program in an effort to help struggling taxpayers. The IRS basically modified their collection procedures relating to offers in compromise, installment agreements, not collectible status, and penalty abatement. The “program” has changed through the years. Today, the program is alive and well. Here are the recent updates.

For more information on the IRS Fresh Start Program, contact the experienced Columbus Ohio tax lawyer today! Our AV Rated law specializes in helping taxpayers who owe money to the IRS. Contact us today!

What is the IRS Fresh Start Program?

Simply put, it is a series changes to established collection alternative procedures to reduce the risk of financial hardship. In plain English, the IRS made it easier to pay your back taxes. For example, the IRS increased the dollar threshold when liens are issued. They also allowed for lien withdraw if you entered into a direct debit installment agreement. The IRS created easier access to payment plans. They also made the offer in compromise program more accessible. Overall, these changes helped taxpayers get back on track.

In the post-COVID world, the IRS has gone even further. The IRS has relaxed the qualifying criteria on its collection alternatives, such as installments agreements and offers in compromise, to help you pay off your tax debts. Collection alternatives are the opposite of paying in full. They have strict guidelines. The fresh start initiative continues to chip away at those stringent guidelines.

How to Apply for a Fresh Start

Before you can apply, you need to be in compliance. That means filing all  required outstanding tax returns.

If you have not filed taxes in many years, we can help you determine how many years worth of tax returns you need to file to be in compliance.

The IRS will not negotiate any collection alternative without being in full tax compliance. This also includes paying current taxes. If you own a business, it means making estimated tax payments. If you’re a W-2 employee, it means having enough withheld from your wages.

The next step is to determine the appropriate collection alternative. If your assets are minimal, and you have very small net monthly income, you may be eligible for an offer in compromise. Or you may want to simply enter into an installment agreement. The IRS has qualifying criteria for each of these collection alternatives. We can help you determine the current status of the criteria to make it as easy as possible to enter into one of these alternatives.

Experienced Columbus, Ohio Tax Attorney

IRS Fresh Start Program | Gahanna, Ohio

If you have questions about your tax debt or the IRS Fresh Start Program, contact the experienced Columbus, Ohio tax lawyer at Porter Law Office, LLC today for a case evaluation. We help with IRS tax problems. Contact us today.