IRS Fresh Start Program: What It Is, Who Will Qualify

IRS Fresh Start program was launched to help taxpayers who have tax debts but no federal tax liens. In this article, read more about this program and find out who qualifies for it!

IRS Fresh Start Program [Photo: Optima Tax Relief]

The Internal Revenue Service (IRS) launched the IRS Fresh Start program back in 2011. This program created specific rules that intend to help taxpayers who have tax debts but no Federal Tax Liens (FTLs). This means that the program was established to give first-time offenders a second chance to pay their taxes. This is made possible by enabling a six-year period of monthly payments based on the taxpayer’s current income and value of liquid assets.

An article on MARCA states that the IRS Fresh Start program also increased the limits for FTLs from $5,000 to $10,000. Eventually, the FTLs limit was increased to $25,000 which reduced the number of FIL filings. The IRS also created more FIL withdrawals for taxpayers who joined the Direct Debit Installment Agreement and more FTL releases for paying off tax debts.

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Who will qualify for the IRS Fresh Start program?

According to the Tax Group Center website, to qualify for the IRS Fresh Start program, taxpayers must be able to pay their debts through installments that will be paid over a certain period. Their debts must also be less than $50,000 and in case it exceeds the amount, a taxpayer must show how they can repay most of the amount.

In addition, a taxpayer must pay the debts in less than 5 years and they must have not fallen behind in any IRS tax payments before. A taxpayer must be ready to meet the direct payment structure requirements and the tax filings for the current tax year.

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