Fresh Start Initiative For 2023 – Your Uplifting Tax Debt Expert

IRS Fresh Start

IRS Fresh Start Initiative Makes It Easy To Get Tax Relief

The IRS Fresh Start program makes it easier for taxpayers with tax problems to pay back taxes. Noteworthy is the ability to avoid tax liens and get tax relief. Here are the three top features of the Fresh Start program:

  • Tax Liens. The IRS Fresh Start program increased the tax liability before the IRS will file a Federal Tax Lien. In most cases, a tax lien is no filed unless the tax liability is at least $10,000 in most situations.

    When a taxpayer meets certain requirements and pays off their tax debt, the IRS may now withdraw a filed Notice of Federal Tax Lien. It’s possible that you may qualify to have your Federal Tax Lien withdrawn if you are paying your tax debt through a Direct Debit Installment Agreement. However, if you default on the Installment Agreement, the IRS may file a new Federal Tax Lien.

  • Installment Agreements. The IRS Fresh Start program expanded access to streamlined installment agreements to a higher amount of tax liability. Now, individual taxpayers who owe up to $100,000 can pay through monthly direct debit installment payments. The payment period is for up to 72 months (six years) with no financial statement disclosure. A direct debit installment agreement is not required for taxpayers that have a tax liability less than $25,000, .

    Taxpayers in need of installment agreements for tax debts more than $100,000 or longer than six years will need to provide the IRS with a financial statement. In these cases, the IRS may ask for one of two forms. Either the Form 433-A, Collection Information Statement for Wage Earners and Self-Employed Individuals or Form 433-F, Collection Information Statement .

  • Offer in Compromise (OIC). An OIC is an agreement that allows taxpayers to settle their tax debt for less than the full amount. The Fresh Start IRS program expanded and streamlined the OIC program.

    If you are like many taxpayers that are burdened with an insufferable amount of back tax debt, you have undoubtedly heard claims of “settling your tax debt for pennies on the dollar”. This claim is misleading at best. The IRS Form 433-A is a financial disclosure required for all applicants.

    While the IRS fresh start program now has more flexibility when analyzing a taxpayer’s ability to pay, one must still fall within the required parameters to qualify for a tax debt reduction. However, IRS Fresh Start makes the offer program available to a larger group of taxpayers.

    Generally, the IRS will accept an offer if it represents the most the agency can expect to collect within a reasonable period of time generally the remaining time. The IRS will not accept an offer if it believes that the taxpayer can pay the amount owed in full as a lump sum or through a payment agreement. The IRS looks at several factors. Including the taxpayer’s income and assets, to make a decision regarding the taxpayer’s ability to pay.

Why wait to next tax year to get your fresh start? Make today your day to stash away your tax problems into the past with a Tax Samaritan tax professional.

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All About Randall Brody
Randall is the Founder of Tax Samaritan, a boutique firm specializing in the preparation of taxes and the resolution of tax problems for Americans living abroad, as well as the other unique tax issues that apply to taxpayers. Here, they help taxpayers save money on their tax returns.

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