IRS Fresh Start Program, Plan Types, Eligibility, How to apply?

The IRS provides a series of programs known as the IRS Fresh Start program to assist individuals who are having financial difficulties paying their taxes. These programs offer expedited tax filing methods, payment options, and other things. 

IRS Fresh Start Program 

One of the many beneficial IRS programs that the Internal Revenue Service and IRS have launched for the benefit of citizens is the IRS Fresh Start Program 2024. This program allows individuals and taxpayers with small businesses in the US who are unable to pay taxes in different ways. 

The Internal Revenue Service’s Fresh Start program assists you with the simple payment of taxes that you are able to pay in small installments. In this way, the IRS Fresh Start Program helps taxpayers avoid getting into debt or easily clearing their all-due taxes. 

You must fulfill the qualifying requirements outlined in this post and adhere to the application process if you wish to apply for the IRS Fresh Start Program. This page explains the IRS Fresh Start payment plans, which you may apply for and select based on your eligibility and requirements.

IRS Fresh Start Program Eligibility 

Check the eligibility from below:

  • First and foremost, you should be an American citizen and taxpayer.
  • If you have had a 25% or more reduction in your annual income, you are eligible to apply.
  • Your annual income must not exceed $100,000 if you’re single or $200,000 if you’re married at the time of application.
  • It is imperative that you have made all of the necessary projected tax payments for the current year.
  • After your tax debt or amount owed is far less than $50,000, you can start practicing for this application.
  • You must pay your taxes whenever they are due if you want to have a spotless record with the IRS.
  • You commit to paying off any unpaid taxes during the next six years.
  • You have to abstain from all forms of fraud and tax avoidance.

IRS Fresh Start Program

How to apply for the IRS Fresh Start Program? 

To apply for the IRS Fresh Start Program you need to follow the given below steps.

  • Access irs.gov, the official website, to finish the application.
  • Enter your tax ID and password to log in; if you haven’t already, register to get started.
  • Use your search engine to locate and select the Fresh Start Program.
  • Once you accept the terms, continue with the application.
  • Add the required information on the IRS Fresh Start Application form.
  • You will need to provide information such as income, assets, bank account, etc. 
  • Once the required files have been uploaded, send and await approval.

What are the plans included in the IRS Fresh Start Program? 

Several payment plan alternatives are available via the IRS Fresh Start Program to assist you in gradually paying down your tax burden.

Offer in compromise

  • If you fulfil certain qualifying requirements, this option enables you to settle your tax liability for less than the total amount owed. 
  • This option requires an upfront payment and an application fee that is not refundable. For this option, you may apply via mail or online. After you make your offer, there won’t be any more interest or penalties applied to your debt. 

Short-term payment plan

  • With this option, you may settle the entire amount due in 180 days. With this plan, there’s no startup cost, but interest and penalties on your debt will still mount. You may apply for this plan over the phone or online.

Long-term payment plan

  • This choice enables you to spread out the repayment of your debt over a maximum of six years by making monthly installments.
  • This plan has an initial setup cost that varies based on how you apply and how much you pay. For this plan, you may apply online or by mail. Until your debt is settled, you will also be assessed interest and penalties. 

Currently not collectible status

  • You might claim financial difficulty and temporarily suspend your duties to settle your tax debt by filing for currently not collectible status. 
  • The IRS is prohibited from taking collection action against you and is required to stop all levies, including bank account levies and tax refund offsets, while your account is designated as presently not collectible.

Penalty Abatement

  • Penalties and interest may be incurred for late tax payments. If you have a substantial outstanding tax bill, penalty abatement may be able to provide you with some relief from penalties.

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