The IRS Fresh Start Program allows eligible taxpayers to resolve their tax debt through manageable payment plans, reduced tax settlements, or temporary IRS collection relief. Now is an excellent time to start your application and avoid accumulating interest and penalties.
This comprehensive guide walks taxpayers through the requirements for the Fresh Start Program and how to qualify, ensuring the most favorable tax resolution terms available.
Who Qualifies for the IRS Fresh Start Program?
Taxpayers who are genuinely struggling to catch up on back taxes can qualify for the IRS Fresh Start Program if they meet specific eligibility requirements. Ideal candidates are individuals or business owners facing a tax burden so large that paying in full would cause significant financial strain.Â
Other qualified individuals include:
- Freelancers or self-employed professionals who experience a sharp drop in income.
- Wage earners facing job loss or medical emergencies.
- Entrepreneurs whose businesses suffer from economic recessions or unexpected operating costs.
What Are the Requirements for the IRS Fresh Start Program​?
IRS Fresh Start Program requirements boil down to filing compliance, tax debt size, and income. In essence, the IRS wants to see that taxpayers are both willing and able to meet future obligations, even if they cannot pay everything immediately.Â
Here are the four baseline eligibility criteria:
- All required tax returns filed and up-to-date.
- Total tax debt (including penalties and interest) is within program thresholds.
- No recent bankruptcy filings or criminal tax violations.
- Demonstrated inability to pay the full amount immediately.
The Fresh Start Program is not a one-size-fits-all solution. The table below compares four Fresh Start options by who qualifies, key eligibility rules, and payment terms.
| Tax Resolution Option | Who It's For | Core Eligibility Requirements | Payment Term |
|---|---|---|---|
| Installment Agreement | Individuals and businesses who can pay over time. |
|
Up to 72 months |
| Offer in Compromise | Taxpayers who cannot pay the full debt without severe financial hardship. |
|
Lump sum or 24 months |
| Currently Not Collectible | Taxpayers who are facing financial distress and cannot afford to pay anything. |
|
Temporary suspension or until CSED expiration |
| Penalty Abatement | Taxpayers who have a valid reason for late filing or payment. |
|
One-time reduction |
Consulting a licensed tax professional is the fastest way to confirm Fresh Start eligibility.
Can TaxRise Help Me with IRS Fresh Start Program Requirements?
Yes, TaxRise specializes in helping taxpayers and businesses with IRS Fresh Start Program requirements. We’ll review your financial situation, ensure every required tax return is filed, and prepare the documentation the IRS expects, helping you avoid costly mistakes and delays.Â
If you’re ready to regain control of your finances and resolve your tax liability, schedule a free consultation with TaxRise today to see if you qualify for the Fresh Start Program.
Frequently Asked Questions
If you haven’t filed past returns, you must submit them before the IRS will review any Fresh Start Program application. However, TaxRise can help you prepare and submit those returns as part of our service and ensure you are compliant with the IRS.
Yes, self-employed taxpayers can qualify for OIC if they demonstrate a significant income decline from previous years. You'll need to provide detailed profit/loss statements and documentation of the income reduction.
If the IRS rejects your Fresh Start Program application, you can correct the identified issues and resubmit. It helps if you do this with the assistance of a professional to help catch and prevent further problems. Most denials stem from incomplete documentation.
No, you do not need a tax professional to apply for tax relief. However, qualified tax professionals like Enrolled Agents significantly increase accuracy and approval chances, especially for complex cases. Professional representation also provides ongoing support through the compliance period.
Keep your tax resolution active by making all required payments on time, staying current with new tax filing obligations, and maintaining the financial conditions that qualified you for tax relief. Schedule regular compliance reviews to catch potential issues early.
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