Any tax debt, no matter the amount, puts a heavy burden on you. Aware of this, the IRS arranges alternative payment plans to help you settle your tax debts as soon as possible.
If you can’t pay part of your tax debt, the IRS offers the IRS Fresh Start Program 2024. In this article, you’ll find what remedies the IRS offers in cases where part of the balance can’t be paid.
What is the IRS Fresh Start Program?
The IRS provides various payment facilities to help taxpayers who are struggling to pay tax debts. The IRS Fresh Start Program is one such tax relief option. Should you qualify for this program, you stand to gain from several advantages.
Who is eligible for the IRS Fresh Start Program 2024?
The program is open to all US taxpayers. Plus, there is no minimum income requirement to qualify for it.
- Have filed all the required tax returns for the past three years.
- Owe less than $50,000 in taxes, including interest and penalties.
- Commit to settling your tax debt within six years.
- Have made all necessary estimated tax payments for the current year.
- Not have engaged in any tax evasion or fraud activities.
- If your annual income decreased by 25% or more, you’re eligible to apply.
- Your annual income must not exceed $100,000 if single, or $200,000 if married, at the time of application.
If you meet the above criteria, it’s highly suggesting consulting our tax law experts to determine quickly and accurately whether you’re eligible. Additionally, our experts will help you complete the necessary paperwork and submit it to the IRS. Plus, they’ll follow the process on your behalf and ensure every step is correctly handled.
Feeling Overwhelmed?
The IRS Fresh Start Program Payment Plans 2024
Once your application is accepted, the IRS notifies you by providing with payment options.
Offer in Compromise (OIC)
The OIC lets you settle your tax debt for less than you owe. If you apply for it, the IRS will first review and evaluate your profits, costs, and assets.
Installment Agreement
If you owe $50,000 or less in taxes, you can also apply for an installment agreement. There are two main types of it.
- Streamline Installment Plans: This is a payment plan that makes it easier for you to pay your tax debts over the long term, up to 72 months (in some cases, up to 84 months).
- Partial Pay Installment Plans: This option allows you to make smaller payments over time while the interest and penalties accrue.
Currently Non-Collectible Status
Unlike other payment alternatives, it doesn’t offer an option such as an installment agreement, but offers you a protective “status”. This means it doesn’t eliminate your legal liability for taxes, just allows you to breathe until you regain your financial strength.
Penalty Abatement
It provides penalty relief. However, it’s up to the IRS’s discretion to apply penalty reductions.
If you’re unable to pay even a part of your tax debt:
Hardship status
This status prevents the IRS from collecting your debt until your financial condition improves. However, you must prove that you can’t pay your debt in full or even partial.
How to apply the IRS Fresh Start Program
You need to fill out the IRS Fresh Start application, so click here to apply online. Here’s how:
- Login with your Tax ID and passwords.
- Search for the Fresh Start Program and click on it.
- Accept the rules.
- Fill out the form and submit.
- Upload the required documents.
Before deciding on a payment plan, you need to get a reply about approval or denial.
If the thought of settling your tax debts feels overwhelming, a payment plan from the IRS Fresh Start Program could be your solution. However, the whole program seems complicated to you. That’s why, consider reaching out to the professionals at Precision Tax Relief Advocates.
Frequently Asked Questions
Although the IRS’s willingness to assist anyone, you must meet the expected requirements to be accepted into the program. Contact us for a more consistent forecast.
First of all, it’s necessary to understand all the program details well. Then, you need to evaluate your financial situation and make a decision about payment plan.
It’s for individuals and businesses who owe back taxes to the IRS.
