What is the Fresh Start Program with the IRS?

Most taxpayers after Covid-19 are more likely to face overwhelming tax liabilities due to the economy. A resolution to a taxpayers’ debts and regaining financial stability is the IRS Fresh Start Program by the IRS.

The Internal Revenue Service (IRS) Fresh Start Program was started back in 2011 to assist those taxpayers who are struggling to pay taxes due to unemployment or a major reduction in their income. The Fresh Start Program is designed to help taxpayers like yourself manage current tax obligations and prevent serious financial problems down the road.

How to Apply for the Fresh Start Program?

Applying for the Fresh Start Program you must be aware of what specific requirements are needed to qualify. Here is the usual approach Global Gate Taxes uses. Step one is to check if you meet all of the criteria for the Fresh Start Program. For example, you should clearly provide a reason why you are experiencing a financial setback with the specific amount of debt. In addition, the IRS requires up-to-date filing to qualify for the program. Lastly, we will help you collect all of the following information; your current income, your assets, and debts. By providing the IRS with all of this specific information, you are going to receive a clear and reasonable payment structure to pay back the IRS. 

Once the IRS confirms your approval due to your current financial situation, your two options will be the Installment Agreement or Offer in Compromise. Global Gate Taxes will guide you every step of the way to fill up the necessary forms and submit directly to the IRS along with the supporting resources and documents. 

Throughout this step, the IRS will review your application and will notify us if any future additional document is needed. If no documents are required we will wait to get a response to then negotiate the payment terms reasonable for you.

Lastly, once the negotiation phase is finalized and approved you will be aware of the payment terms to start paying back your tax debt without being stressed. 

We invite you to learn more about the current available Tax Debt Relief Programs.

What are the four main programs available?

The four programs of the Fresh Start Program are the installment agreement, offer in compromise, wage garnishment, and innocent spouse relief. The installment agreement is a payment plan that divides the total amount due into smaller and manageable monthly payments. The offer in compromise option allows taxpayers to pay less than the total amount owed but usually paid in full.

The wage garnishment deducts a percentage of the taxpayers salary directly from the employer’s paycheck to pay the outstanding debt.

If you are married, and you were unaware of the tax errors on your spouse’s income, the innocent spouse relief will be your best option. 

What are the Qualifications?

The qualification for the IRS Fresh Start Program are the following, keep in mind you must qualify at least for one in ordered to approved for any of the four program: 

  1. You must have experienced a 25% of income reduction if you are a self employed
  2. Earning less than $100,000 in income and must be single 
  3. Earning less than $200,000 in income for married couples 
  4. Lastly, the tax debt balance should not surpass the $50,000 amount. 

By reading these four points above, we hope you have a clear idea if you have a possibility of qualifying for the IRS Fresh Start Program. 

Frequently Asked Questions

What is the timeline for the program?

The timeline for the IRS Fresh Start Program really depends on your financial situation, the program you qualify for, and lastly the processing period with the IRS. Based on our experience, our clients can take several weeks or up to months. Just remember that each taxpayer’s case is unique.

What is the IRS hardship program?

The IRS hardship program and the IRS Fresh Start Program are the same thing, they are just used interchangeably. The IRS hardship program assists struggling taxpayers to pay their taxes due back.

What happens if I owe taxes and ignore it?

Owing taxes and ignoring them are not the best approach to go about it. As a taxpayer, you don’t want to ignore any letters received by the IRS since it will just start to pile up on interest, penalty fees and might even freeze your assets and more.

Thank you for trusting Global Gate Taxes to help you during a tough financial situation. You are not alone, millions of Americans are going through hardship and a way to get this fixed is by scheduling a consultation with our tax specialists. 

– Safwan, owner of Global Gate Taxes