IRS Fresh Start Program

In 2011, the Internal Revenue Service (IRS) launched the Fresh Start Initiative. With the IRS Fresh Start program, a taxpayer can enter into a payment plan for 72 months for any assessed balance up to $50,000. The program also allows taxpayers to be placed on affordable payments based on their finances, avoid tax liens being filed, have an easier lien withdrawal process, and an updated Offer in Compromise (OIC) program making it realistic for offers to be accepted. Many taxpayers find themselves in a panic each year due to being unable to pay their tax debt. With lack of tax knowledge, many taxpayers do not take advantage of the options available to them to resolve their tax debt.

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The Fresh Start Initiative allows taxpayers to take advantage of the following available programs:

  • Offer in Compromise - The OIC is accepted in higher numbers now than in previous years primarily due to the IRS now only calculating a taxpayer's future income over 12 a month period. In the past, the future income was calculated up to the number of months remaining in the collection expiration statue date. The IRS now also allows expenses such as student loan payments and state installment agreement payments in the calculation of a taxpayer’s monthly living expenses.
  • Tax Lien Changes - The IRS will not file a tax lien if the unpaid tax debt is less than $10,000 versus $5,000 as per the previous threshold. Another change regarding tax liens is in some cases now, tax liens can be withdrawn by a taxpayer entering into a Direct Debit Installment Agreement (DDIA) with the IRS for a term of 60 months or less and if the assessed balance is less than $25,000. Once the IRS has debited three direct debit payments out of a taxpayer's account, the taxpayer can request for the federal tax liens to be withdrawn.

Our experienced team of tax professionals consists of tax attorneys, Certified Public Accountants (CPA), Enrolled Agents (EA), and Certified Tax Resolution Specialists (CTRS) who educate and help our clients be in compliance with their tax returns, estimated tax payments if needed, as well as educating clients to prevent recurring future tax debt balances. Our professionals evaluate each client’s financials and personal situation, prepare well-presented arguments, and get you the fresh start that you deserve to move forward with your life. Let us help get your life back with LifeBack Tax.

Frequently Asked Questions About IRS Fresh Start Program