In case you owe the IRS money, you may be interested in the Fresh Start Program. This program was designed to help taxpayers who are struggling to pay their taxes. In this blog post, we will explain what the Fresh Start Program is and how it can help you.
What Is the IRS Fresh Start Program?
The Fresh Start program is a collection of initiatives from the IRS that are designed to help taxpayers who are struggling to pay their taxes. The program offers more flexible payment options, as well as reduced penalties and interest rates.
In 2011, the IRS broadened the Fresh Start Initiative, making it available to even more taxpayers. The program then offered more payment options, including a longer installment agreement and a reduced penalty for taxpayers who pay their taxes in full. While the program has since ended, the IRS still has a number of programs that can help taxpayers who are struggling to pay their taxes.
Do I Qualify for the IRS Fresh Start Program?
The Fresh Start program was available to all taxpayers who are struggling to pay their taxes. However, there are a few qualifications that you had to meet in order to be eligible for the program.
You must owe less than $50,000 in combined tax, penalties, and interest You must be able to pay your debt in full within 72 months (six years) You must have filed all of your past tax returns.
If you meet these qualifications, the IRS will work with you to create a payment plan that is more manageable for you.
How Does the Fresh Start Program Work?
There are three main components of the Fresh Start Program:
The Fresh Start Initiative for individuals
This initiative offers more flexible payment options, including a longer time period to pay off your debt and reduced penalties and interest rates.
The Fresh Start Initiative for businesses
This initiative offers more flexible payment options and relief from certain compliance requirements.
The Fresh Starters Program
This program helps new businesses get started by offering them reduced penalties and interest rates on their taxes.
What Are the Benefits of the Fresh Start Program?
The main benefits of the Fresh Starters Program are:
- Reduced penalties and interest rates: You will typically pay less in penalties and interest if you enroll in the Fresh Start Program.
- More time to pay off your debt: You can have more time to pay off your debt if you enroll in the Fresh Start Program.
- Flexible payment options: You can choose from a variety of flexible payment options, including installment plans and reduced penalties.
How To Enroll in the Fresh Start Program?
To enroll in the Fresh Start program, you needed to complete Form 433-A (Collection Information Statement for Wage Earners and Self-Employed Individuals) or Form 433-B (Collection Information Statement for Businesses). You’d then submit the form to the IRS. Alternatively, you can call the IRS at 800-TAX-FORM (800-825-3676) and ask them to mail you a copy of the form.
What Are the Restrictions of the Fresh Start Program?
There are a few restrictions to be aware of:
- You cannot have an installment agreement in place with the IRS at the same time that you enroll in the Fresh Start Program.
- If you are enrolled in the Fresh Start Program, any new tax liabilities will not be eligible for relief under this program.
- You will need to continue to file your tax returns and pay your taxes on time, even if you are enrolled in the Fresh Start Program.
Get Compliant and Get Tax Relief
Morris and Associates are experts when it comes to helping individuals and companies find tax relief in Georgia but can help no matter where you live or whatever tax questions you have. Contact us to help with your taxes and possibly even reduce the amount that you owe.
