The new updates to the Fresh Start initiative are another set of rules that must be kept clear when trying to resolve tax problems. With the IRS Fresh Start initiative, there are several ways to ease your tax burden through affordable payment agreements. Unlike other Fresh Start tax programs, non-collectible status is a “state” rather than a form of tax relief. While an installment agreement is a valid form of Fresh Start tax relief, it's difficult to reach an agreement with the IRS for a reasonable monthly payment.
The Fresh Start program allows taxpayers with back taxes to enter into an agreement that extends the payment over months, but not more than 5 to 6 years. If you are an individual taxpayer willing to pay the debts you owe in a series of installments with a direct payment structure, you could benefit from the IRS Fresh Start Program. The severity of your financial difficulties determines what type of Fresh Start tax program is available to you. Some people unintentionally violate tax laws, so the IRS created the Fresh Start Program (Fresh Start Initiative) to help them.
The IRS Fresh Start Program is an excellent option for involuntary tax violators because of its flexibility. The IRS will not accept a request for tax relief through the Fresh Start Initiative without sufficient evidence. Dealing with the IRS can be a confusing and stressful experience, especially when you're asking for help with your back taxes, and exploring the options available in Fresh Start can be overwhelming. 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.
To meet the requirements of the IRS Fresh Start Initiative, you must be able to show that paying your tax balance would cause you significant financial difficulties. The Fresh Start program is designed to help businesses and individuals get tax debt relief and avoid penalties. You must include your unfiled or missing tax returns, your current estimated tax payments, and current withholding taxes in your recent paychecks to qualify for the Fresh Start Tax Relief Program.