Americans who owe back taxes to the IRS may qualify for a special government program that can wipe out built-up tax debt.

The Fresh Start Program was designed to help qualifying taxpayers who owe back taxes to the IRS.

Though not everyone is eligible, some of those who are can knock off over 90% of back taxes owed. 

What’s The IRS Fresh Start Program?

The Fresh Start Program has been available to those who qualify since 2011. However, with the recent influx of IRS agents and inflation, this program is more relevant than ever to Americans who owe back taxes. 

The US Government prohibits the IRS from collecting more than the taxpayer can pay. Though this rule may sound obvious, it’s a fundamental part of the Taxpayer Bill of Rights (TBOR). Offering tax relief options, like an offer in compromise, in case a taxpayer can’t pay is also a fundamental right taxpayers have through the TBOR. 

How Does The Fresh Start Program Work?

In order to qualify, you must send proof of inability to pay to the IRS. This includes, but isn’t limited to, medical statements, insurance claims, and student loan statements. 

Additionally to qualify, you must file all missing or uncompleted tax returns, and your estimated tax payments and withholdings must be correct and up to date.

Take this 30-Second Survey to See if You Qualify for the IRS Fresh Start Program.

What’s an Offer In Compromise (OIC)

An Offer in Compromise, or OIC, is one of three main programs the Fresh Start Program offers. It’s frequently regarded as the best method of tax relief available.

This program agrees to settle a person’s tax liability for as much as they can pay. Due to this favorable agreement, it’s a little harder to qualify for than the other programs.

How To Qualify For An OIC

According to the IRS, to qualify for an OIC, you must:

  • Prove your inability to pay (prove income, expenses, and asset equity)
  • File all missing or incomplete tax returns
  • Made all required estimated tax payments for the current year
  • The taxpayer’s reasonable collection potential (RCP) must be less than the amount the taxpayer offered to settle for

Take our tax relief quiz to see if you qualify for tax debt relief programs. 

How Fresh Start Info Can Help

Dealing with back taxes is tough. OIC requirements are strict, and your chances of being accepted increase significantly if you have a certified tax relief company on your side.

Tax relief companies have the knowledge and resources to ensure the best resolution possible.

Now that you have a better understanding of the Fresh Start Program, take the quiz and see if you qualify!