Who qualifies for the IRS Fresh Start Program?
The IRS Fresh Start Program is a program designed to help individuals and businesses who are struggling with tax debt find a way to resolve their tax issues and get back on track. This program offers various options for tax relief, including installment agreements, offers in compromise, and currently not collectible status. But who qualifies for the IRS Fresh Start Program?
Individual taxpayers
Individual taxpayers who owe less than $50,000 in combined tax, penalties, and interest may qualify for the IRS Fresh Start Program. This includes individuals who have filed all required tax returns and are current on their filing requirements. Additionally, individuals who are in compliance with all other tax laws and regulations may also be eligible.
Business taxpayers
Business taxpayers, including sole proprietors, partnerships, and corporations, may also qualify for the IRS Fresh Start Program. Similar to individual taxpayers, business taxpayers must owe less than $50,000 in combined tax, penalties, and interest. They must also be current on their filing and payment requirements and comply with all other tax laws and regulations.
Installment agreements
One of the primary benefits of the IRS Fresh Start Program is the ability to set up an installment agreement. This allows eligible taxpayers to pay off their tax debt over time, rather than in a lump sum. Taxpayers who owe less than $10,000 may qualify for a streamlined installment agreement, which is easier to apply for and does not require a financial review.
Offers in compromise
Another option available through the IRS Fresh Start Program is an offer in compromise. This allows eligible taxpayers to settle their tax debt for less than the full amount owed. To qualify for an offer in compromise, taxpayers must demonstrate that they cannot pay the full amount owed and that paying less would be in the best interest of the IRS.
Currently not collectible status
In some cases, taxpayers may qualify for currently not collectible status, which temporarily stops the IRS from collecting on a tax debt. This status is available to taxpayers who can demonstrate that they do not have the financial resources to pay their tax debt and that their financial situation is not expected to improve in the near future.
Conclusion
The IRS Fresh Start Program is designed to help taxpayers who are struggling with tax debt find a way to resolve their issues and move forward. To qualify for this program, taxpayers must meet certain criteria, including owing less than $50,000 in combined tax, penalties, and interest, and being current on their filing and payment requirements. By understanding the eligibility requirements and exploring the available options, taxpayers can take the first step towards a fresh start.
