Q&A of the Week August 23, 2023

Question

What is the IRS Fresh Start Program?

Answer

The IRS Fresh Start Program is the way the IRS helps taxpayers who are struggling to pay the taxes they owe in full. If eligible, there are 4 payment options:

1. Installment agreement

2. Offer In Compromise (OIC)

3. Currently Not Collectible Status

4. Penalty Abatement

Following are some of the eligibility requirements:

• Must have filed all required tax returns for the last 3 years

• Can't owe more than $50,000 in taxes, penalties, and interest

• Must agree to pay outstanding tax bill within 6 years

• Must be current on all required estimated tax payments for the current year

• Cannot be involved in tax evasion or tax fraud

You can apply for the Fresh Start Program by sending a letter and IRS Form 843 to your regional IRS office. You can include additional documentation like insurance claims, death certificates, medical statements, layoff notices, etc.

As always, we recommend consulting a tax professional.