Tax season is stressful, especially if you have a debt to the IRS for the past few years. Waiting to resolve your debt won't get easier as the years go by, and if you want to get rid of your debts with as little pain as possible, now is the time to act. The IRS Fresh Start Program is a way to pay off your debts without the costly penalties and interest of an installment plan. As part of the Fresh Start Initiative, the IRS can also issue “withdrawals” of previously published tax liens.
When a lien is released, it still stays on your credit report. However, with the addition of lien withdrawals to the Fresh Start Program, liens can now be removed from your records to help repair your credit score and obtain loans in the future. To successfully apply for the IRS Fresh Start Initiative, you must follow all the guidelines that the IRS has established. It's important to note that the Fresh Start program isn't for everyone, but it's an option offered to taxpayers who owe back taxes.
Those applying for the IRS Fresh Start Program must follow the guidelines set by the IRS for all previous and existing tax returns. Each of the options available in the IRS Fresh Start Program offers different advantages and disadvantages. The IRS requires that you be up to date with all tax returns before you are considered for the Fresh Start program. To meet the additional requirements for obtaining a tax relief through the Fresh Start Program, you must file all missing or unfiled tax returns, your estimated tax payments must be current, and your current withholding must be correct.
If changes to the tax code affect your agreement and make it difficult to pay, your tax professional can take proactive steps to ensure that you stay up to date with the IRS Fresh Start Program. They want to receive their money as quickly as possible and have established the IRS Fresh Start Program so that delinquent taxpayers can pay their debts in installments for six years. In addition, the IRS requires you to file all returns while enrolled in the Fresh Start Program on time. The IRS Fresh Start Program exists to help taxpayers get relief from large tax bills that they can't pay immediately.
In addition to simplified installment agreements, the IRS's Fresh Start tax settlement program has also made it easier for taxpayers to qualify for a compromise offer. For example, with the Fresh Start Program, the IRS recently raised the filing threshold for the Federal Tax Notice.