Fresh Start Initiative
In 2012, the Internal Revenue Service (IRS) introduced the Fresh Start Initiative program to assist taxpayers facing financial difficulties. Here’s what you need to know:
Qualification Requirements
To qualify for the Fresh Start Initiative, you must meet specific criteria:
- Unemployment for at least 30 days during the last tax year or before April 15 of the current year
- Income limits: $100,000 for individuals, $200,000 for married couples
- Self-employed individuals must document a 25% drop in income
- Owe less than $50,000 in taxes and penalties
If you meet these qualifications, you can apply using IRS Form 1127-A, “Extension of Time for Payment of Income Tax Due to Undue Hardship.”
Federal Tax Liens and Benefits
The Fresh Start Initiative raises the threshold for IRS filing of federal tax liens, making it easier to avoid them. It also streamlines the process for lien withdrawal after full payment of tax debt.
Payment Options
The program facilitates installment agreements for small businesses with balances up to $25,000, requiring full payment within 24 months. Additionally, individuals earning up to $100,000 are eligible to apply for an offer in compromise.
Representation and Assistance
Tax Resolution Experts at Tax Resolution Services have extensive experience with IRS programs and can help you navigate the Fresh Start Initiative. Contact us today for personalized assistance in resolving your tax debt.