Identifying Effective Tax Help Solutions

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How does the IRS Fresh Start Program work?

On Behalf of | Jan 25, 2023 | Tax Debt |

Are you a Washington resident seriously behind in paying your income taxes? Reducing tax debt may be virtually impossible for some, yet the Fresh Start Program can provide a way for delinquent taxpayers to comply with their obligations.

What is the Fresh Start Program?

The IRS created the Fresh start Program in 2011 to provide relief to certain taxpayers. It’s also called the Fresh Start Initiative. Under tax law, some individuals who apply for the program may be able to reduce their tax debt by as much as 90%. The IRS must offer the Fresh Start Program to taxpayers who can demonstrate that paying their debt would cause significant financial hardship. The amount of debt determines what type of debt relief offer a taxpayer receives.

Available Fresh Start Programs

The IRS cannot collect more money than what an individual can pay. Depending on the hardships and amounts owed, the IRS may offer one of the following programs:
• Installment agreement
• Offer-in-compromise
• Currently non-collectible status
• Penalty abatement

Potential program enrollees must go through a formal application process and demonstrate hardship through documentation. Among the items you must submit include:
• Medical statements
• Fire department reports
• Insurance claims
• All missing or unfiled tax returns

Estimated tax withholdings and payments for the last six months should also be current.

Finding the most effective tax solution

Ensuring that all documents submitted to the government are accurate is essential in finding the best tax relief solution. Applicants should also file Form 843 explaining their personal situation and why they are unable to pay their delinquent taxes.

Many government programs require applicants to complete the necessary paperwork and submit documents in a specific manner. The process can become confusing for some people. Getting help with your application is the best way to ensure that the government will approve it and you will receive an offer that works with your current financial situation. The sooner you start the process, the sooner you will receive tax relief and get on with your life.