What is the IRS Fresh Start Initiative?



About the IRS Fresh Start Initiative


The IRS Fresh Start Initiative's primary goal is to make the process of settling delinquent federal tax debt easier for individuals and businesses. The Fresh Start Initiative combines several features, including reduced standards that allow some taxpayers to settle their delinquent federal taxes for less than the amount they owe, and making the initial filing and processing of applications quicker and more efficient.

The IRS is attempting to become a streamlined debt collector that is focused on taxpayers becoming compliant and making continuous timely payments, rather than issuing liens and levies to take property from delinquent taxpayers. As a result, the process for settling a taxpayer's delinquent federal tax obligations has become significantly more mechanical, mitigating the need for professional representation and opening the door for individuals to settle their own federal tax delinquencies.




Your IRS Settlement Options And How Our Software Helps


As part of its Fresh Start Initiative, the IRS provides only three options for taxpayers who owe federal tax debt and do not currently have the ability to pay in full. My Fresh Start automatically fills out the necessary forms to pursue these plans, and we guide you through choosing and filing for the plan that's the best fit for your unique financial circumstances.



Installment Agreement

Installment Agreement


An Installment Agreement is a binding payment agreement for the full tax liability owed to be paid over a period of time up to seventy two (72) months. With an Installment Agreement, penalties and interest continue to accrue until your balance is paid in full, but the statute of limitations on collections continues to run. If you quality for an Installment Agreement, this typically is the easiest plan to pursue and is least likely to result in IRS rejection.

Typical IRS Forms for an Installment Agreement include Form 9465, Form 2159, and Form 433-F.

Offer in Compromise

Offer in Compromise


An Offer in Compromise allows you to settle your tax debt for less than you owe. The amount offered represents the most the IRS can expect to collect in light of your financial position. If paying your full liability would create a financial hardship, the IRS will consider your circumstances to determine an acceptable offer amount. Penalties and interest will not continue to accrue, but the statute of limitations will not run during the offer payment period.

Typical IRS Forms for an Offer in Compromise include Form 433-A, Form 433-B, Form 656, and Form 656-PPV.

Currently Not Collectible

Currently Not Collectible


Filing for Currently Not Collectible status will stop IRS collection activities against you temporarily but requires financial disclosure to show that you do not currently have the ability to pay. It is a temporary status during which interest does not stop accruing. The IRS statute of limitations on collecting the tax you owe will continue to run during the time you have been granted Currently Not Collectible status.

Typical IRS Forms for filing as Currently Not Collectible include Form 433-F.



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