IRS Fresh Start Program 2022: Which Resolution Is Best For You?
IRS Fresh Start Program 2022
What is the IRS Fresh Start Program and how can the team of tax professionals at CuraDebt help you get started?
The IRS Fresh Start Program, also known as the Fresh Start Initiative, is a program that was created by the federal government. Although it was created by the government, the IRS is obligated to offer this program to taxpayers who have current tax debt. This program allows taxpayers who are in debt with the IRS to pay off their debt, in most cases this means making monthly payments to the IRS through an installment agreement. Negotiating with the IRS can be a challenge. Here at CuraDebt, we have a team of tax professionals who can contact the IRS on your behalf and negotiate a resolution that works for you, based on your finances.
What are the benefits of an IRS Fresh Start Program?
- The IRS Fresh Start tax program can help taxpayers who owe much more than they can afford to pay. Taxpayers who are considered eligible can significantly reduce their federal tax debt; in some circumstances, they may be able to reduce 90% or more of what they owe.
- The IRS Fresh Start program is an approach to achieving tax debt relief while avoiding a tax lien or levy.
- The Fresh Start Program will put you in good standing with the IRS and you will be able to maintain or improve your credit score.
What are the four main program options available through the IRS Fresh Start Program 2022?
The IRS Fresh Start Program aids in tax relief through four main program options such as installment agreements, offer in compromise, currently not-collectible status, and penalty abatement.
1. Installment Agreements
The most popular program of the Fresh Start Program is an Installment Agreement. An Installment Agreement is a payment plan, where the taxpayer pays off their debt through monthly installments to the IRS. A benefit of setting up an installment agreement is that you will no longer receive collection letters.
2. Offer in Compromise (OIC)
Another option of the IRS Fresh Start Program is an Offer in Compromise (OIC). This option allows qualified taxpayers to make a settlement for a fraction of what they owe. Although an Offer in Compromise is the best option that is offered through the Fresh Start Program, there are certain eligibility guidelines that taxpayers must meet.
3. Currently Not Collectible Status
Unlike the other Fresh Start tax programs, Currently Non-Collectible is a status. This status does not remove tax debt, but it does put a hold on collection activities. This status is not permanent, so a taxpayer must be prepared to seek a tax relief resolution while they are under the Currently Not Collectible Status. This option is eligible for taxpayers who are currently experiencing financial hardship.
4. Penalty Abatement
When a taxpayer fails to file or fails to pay their taxes, they can accrue penalties that increase the debt that they must repay. If you have significant penalties with the IRS, there is a chance that you may be eligible for a Penalty Abatement, where the IRS will forgive and deduct the penalty off of what you owe.
Negotiating with the IRS can be a challenging and time consuming task. Here at CuraDebt, we have a team of tax professionals who are available to negotiate with the IRS on your behalf and find a resolution that works best for you, based on your financial situation.
If you would like to find out more about the IRS Fresh Start Program 2022 please contact us today for your free consultation.