The Fresh Start Program was created by the IRS for taxpayers to negotiate their tax debts and, hopefully, settle on a resolution. Millions of people owe the United States government billions of dollars in back taxes. Every year, the IRS spends millions more on collection activities that add to the deficit. Through the IRS Fresh Start Program, taxpayers are able to save money, and the IRS is able to spend less and collect more. It’s really a win-win situation…right? At the end of the day, the IRS wants to collect as much money as possible. If you decide to fight the IRS by yourself, it’s important you fully understand your options.
- If you ever default on a monthly payment, no matter the reason, the IRS will cancel your payment plan immediately.
- Once you default with the Fresh Start Program, it is extremely difficult to reapply successfully.
- A defaulted payment plan will result in the IRS beginning extremely aggressive collection activities.