What is the Fresh Start Program?
Fresh Start is not a single program but a set of IRS initiatives to make it easier to resolve tax debt. It includes expanded streamlined installment agreements, more flexible Offer in Compromise terms, lien withdrawal for taxpayers in payment plans, and penalty relief for certain taxpayers. The IRS has expanded eligibility over the years to help more people get back into compliance.
Streamlined Installment Agreement (2025)
Taxpayers who owe $50,000 or less (including penalties and interest) can qualify for a streamlined agreement with minimal financial disclosure. You propose a payment that pays the debt within 72 months (or 84 months for balances over $25,000). No need to submit a full Collection Information Statement in many cases. Apply online at IRS.gov. Thresholds may be adjusted for inflation.
Lien Withdrawal
If you have a tax lien and enter a direct debit installment agreement, the IRS may withdraw the lien (remove it from public record) once you've made a few payments. This can help your credit. You must be in compliance with filing and payment requirements. Request withdrawal using Form 12277.
Offer in Compromise Changes
Fresh Start expanded OIC eligibility by revising the calculation of future income (from 4 years to 2 years in some cases) and allowing more flexibility in asset valuation. The application fee may be waived for low-income taxpayers. If you previously did not qualify, you may qualify under current rules. Have a tax professional evaluate your situation.
