IRS Fresh Start Program: Eligibility, Installment Agreement, Difficulty Status

The IRS has started the IRS Fresh Start Program to provide benefits to the taxpayers in the tax obligation. According to this program candidates will be able to reduce the tax debt although the govt has set an eligibility criteria to avail this benefit, visit for more details.

IRS Fresh Start Program

IRS started the IRS Fresh program in 2011 to help taxpayers in saving the money. The motive of the IRS Fresh Start program is to provide tax obligation to the taxpayers. The IRS Fresh Start Program assists the tax payers in reducing the tax debt. The enrollment in this program saves from other collection activities of the IRS including wages garnishment.

IRS Fresh Start Plan

The IRS has taken a number of initiatives under the Fresh Start Program to assist struggling individuals in lowering their tax obligation. Candidates can utilize tax relief alternatives including debt settlement, payment plans, first-time penalty waivers, and the temporary postponement of tax collections, taxpayers can get a fresh start.

Programme IRS Fresh Start Programme
Program Started in 2011
Number of Tax Relief Options 4
Official website

The IRS Fresh Start Initiative offers tax relief programs for taxpayers who owe the IRS money but find it difficult to pay what they owe while still covering their basic living expenses. These programs assist taxpayers in reducing their tax debt in a way that is reasonable given their financial situation.

IRS Fresh Start Program

Who is eligible for the IRS Fresh Start Program?

You need to satisfy the following requirements in order to be eligible for the new start program:

  • Your tax debt is less than $50,000.
  • You have a spotless record and have never failed to make IRS payments.
  • Your (single) yearly income is less than $100,000.
  • Your married household income is under $200,000 per year.
  • Your revenue as a lone proprietor has decreased by 25%.

IRS Fresh Start Scheme

There are four primary tax debt reduction programs under the IRS Fresh Start Initiative in 2023,, including Installment contracts, In-Compromise Offer and Penalty Abatements for Non-Collectible Status Currently.

These IRS Fresh Start Program pillars support the objective of freeing taxpayers from the weight of the Federal Government’s tax collection tactics, which include financial penalties and tax liens to penalize people and small companies with unpaid tax arrears.

IRS Fresh Start Installment Agreement

Installment agreements allow qualifying people to make manageable monthly payments to the IRS as a way of assisting them in paying their taxes as part of the fresh start that the IRS offers. The determined tax debt is directly reduced by these manageable installments up until the balance is paid in full.

The IRS may still charge you interest on the amount of unpaid taxes, and it will do so. You will be in a stronger position to file for bankruptcy after making your third direct debit installment arrangement payment and your tax debt total is less than or dips below $25,000. 

IRS Difficulty Status

The IRS difficulty Status, often known as the Currently Not Collectible status, effectively allows taxpayers to put their payments on hold while experiencing financial difficulty. You could qualify if you can demonstrate that covering your living expenses and paying your back taxes would put you in a difficult financial situation. Currently Not Collectible does not waive your tax liability; rather, it postpones payments until you are able to make them again.

The taxpayer will be declared uncollectible, at which point the IRS must halt all collection efforts and release any asset levies that are already in place. In the event that you don’t pay and the IRS owes interest, they may file federal tax liens during this procedure.

IRS fresh Program Penalty Reduction

There is a possibility that you can qualify for the IRS fresh start penalty relief if you have hefty fines owed to the IRS. Taxpayers who don’t file their returns or don’t pay their taxes may incur penalties, which raise the amount of debt they have to pay back.

The fourth Fresh Start program option is Penalty Abatement, which is a type of tax relief. The IRS may exempt you from the penalties connected with your tax bill of up to $100 if they deem that you comply with a stringent set of standards.

IRS Fresh Start Important Instruction

Taxpayers must compile particular supporting material to utilize as proof of the state of their financial situation in order to show the IRS that they cannot reasonably afford to pay their tax burden. The following examples of the paperwork you might be required to provide at the start of the application process are not exhaustive:

  • loan statements for students
  • Insurance occurrences
  • A doctor’s remarks and medical records
  • Birth and death records for members of the close family
  • A sincere letter explaining your circumstance

Finally, in order to be eligible for the advantages of the Fresh Start project, your tax filing must be current. 

Go to NCBLPC Homepage.

Leave a Comment