IRS Fresh Start Program
If you got this far in your search, it’s most likely that you have a debt to the IRS that you’re struggling to pay. I understand the stress you’re dealing with, as I have personally experienced it myself. I promise to make it easier for you to understand the IRS Fresh Start Program in the simplest way possible and help you make an informed decision about whether it’s the right option for you.
What Does the IRS Fresh Start Program Exactly Do?
The IRS Fresh Start Program is specifically designed to help taxpayers in paying back their debt in the following steps:
IRS Fresh Start Program Payment Plan Options
The program provides two primary types of payment plans for taxpayers:
Streamline Installment Plans:
These plans are tailored for taxpayers who need an extended period to pay off their tax debt. Typically, individuals can make payments over an extended duration, often up to 72 months, and in some cases, even up to 84 months.
Partial Pay Installment Plans:
Another option for taxpayers struggling to make full payments, these plans allow taxpayers to make smaller, more manageable payments over time. However, it’s important to note that interest and penalties continue to accrue. In many cases, taxpayers can significantly reduce their tax debt by leveraging the statute of limitations—a sort of expiration date for debt set by the IRS for collecting the amount owed.
Our team of tax professionals is equipped to assist you in maximizing this time limit by negotiating for a lower monthly payment, allowing a substantial portion of your debt to expire.
What If You Can’t Afford a Payment Plan?
In some cases, a standard payment plan may remain out of reach. The IRS Fresh Start Program offers alternative solutions:
Offer in Compromise (OIC):
If you’re unable to meet the requirements of a traditional payment plan, the Offer in Compromise(OIC) might be your ticket to tax debt freedom. OIC allows you to settle your tax debt for less than the full amount owed. To qualify, you must demonstrate that paying the full amount would create a financial hardship. The IRS evaluates your financial situation, and if you qualify, a non-refundable deposit is required, typically set at 20% of your offer amount.
Currently Non-Collectible Status:
If making any payments on your tax debt seems impossible due to severe financial limitations, Currently Non-Collectible Status offers a breather. Under this status, the IRS temporarily halts debt collection until your financial situation improves. To be eligible, you need to show that paying the full amount would put a serious financial strain on you.
Penalty Abatement:
When paying taxes becomes a challenge, Penalty Abatement comes to the rescue. It allows for the waiver of certain penalties associated with your tax debt. The IRS may consider your request if you can provide a valid reason for your inability to pay on time, such as a serious illness or exceptional circumstances.
With the Payment Plan Options clarified, let’s move forward to determine your eligibility for the IRS Fresh Start Program!
Eligibility and Application Criteria for the IRS Fresh Start Program
To initiate the process of applying for the IRS Fresh Start Program and seeking financial relief, substantial evidence must be provided to demonstrate financial hardship. This evidence can encompass documents such as medical statements, insurance claims, or other relevant records. As part of the application process, it’s essential to address several criteria:
- A 25% decrease in income if you are a sole proprietor.
- An annual income below $100,000 (for single individuals) or combined annual income below $200,000 (for married individuals).
- Tax debt must be less than $50,000.
- Maintain a clean record with zero missed delinquent payments to the IRS.
And now it’s time for you to discover how the IRS Fresh Start Program helped many of our clients with the assistance and guidance of our professional experts at Ideal Tax.
Our Clients’ Success Stories
1-The Story of Khan’s 400k Transformation
Khan owed the IRS $400,000 and had to deal with the threat of a bank levy. She then reached out to one of our experts. After a careful look into her case, our team introduced her to the IRS Fresh Start Program. We helped her by placing her debt under the Non-Collectible Status option, which proved to the IRS that she was genuinely unable to pay her debt with her current financial situation.
2- Zorida’s Financial Journey from Burden to Balance
With a $251,000 debt owed to the IRS and an installment agreement requiring monthly payments of $3,500, Zorida sought our help hoping for an immediate solution. Thanks to our experts’ strategic negotiations and by reevaluating her installment agreement, we successfully managed to find a significant turnaround through the IRS Fresh Start Program. Zorida’s debt was lightened, with her balance reduced to a more manageable $35,000 accompanied by a streamlined installment agreement lowering her monthly payments to $525.
3- Ronald’s Case: $40k Burden Eased
Faced with a significant amount of $40,000 debt to the IRS, Ronald reached out to our financial professionals for an effective solution to his case. Through careful negotiations and strategic interventions, our team managed to settle Ronald’s debt for a monthly payment of $555 through the IRS Fresh Start Program.
As you consider your own financial journey, these stories serve as a testament to the program’s potential to bring about a positive and transformative impact. Whether you’re grappling with a substantial debt or seeking a second chance for financial stability, the IRS Fresh Start Program is THE solution you need to embark on a path towards a brighter financial future.
Is the Fresh Start Program a Good Fit for You?
Curious about your chances of getting your case accepted under the Fresh Start Tax Program?We strongly advise that if you’re facing tax-related challenges, now is the time to act. Reach out to us immediately to explore your prospects of gaining acceptance into this powerful program. Your journey towards financial relief begins today!
Why choose Ideal Tax?
For over 13 years, IdealTax has been in the service for those dealing with financial and tax issues. Our professional team will help you get the best results from the IRS and also act as a buffer between you and the IRS so you can focus on your daily job.Our diverse team includes tax attorneys, federally licensed enrolled agents, skilled accountants and also, they have to deal with hundreds of cases every month so they’re so experienced in what they do.Also, as 70% of our clients are behind on IRS tax filing, our team has expertise in this field.
