Due to the pandemic, several Americans had to endure taxes and penalties associated with it. Unfortunately, the penalty and fine associated with unpaid taxes are exorbitant, making an individual fall further behind on their taxes. This adds up to more interest and charges to the penalty. To combat the brutal practices of the IRS, the Federal Government launched Fresh Start Program or Fresh Start Initiative in 2011. This helped several Americans and businesses to come back to normal after enrolling in this program.
So, what is IRS fresh start program?
Taxpayers who owe more than they can pay can benefit from the IRS Fresh Start program. If a taxpayer applies and is approved, they can drastically lower their federal tax debt. In some cases, they can fit to lower 90 percent or more of what they owe. The Fresh Start Program is the best opportunity for some individuals to lower their tax obligation. It was created to assist indebted taxpayers in lowering the amount they owe for them to resume paying their taxes and start making financial plans for the future.
Benefits of the Fresh Start Program
There are four programs in the Fresh Start Initiative. A taxpayer can choose any one of the programs based on their tax liability –
Offer in Compromise (OIC)
The Fresh Start made it simpler for taxpayers to settle their tax burden for just a percentage of the overall balance.
Installment Agreement (IA)
The Fresh Start expanded the options available to taxpayers for establishing a reasonable monthly payment schedule.
Currently Non-Collectible (CNC)
The IRS acknowledges that you do not currently have the income to make monthly payments to the IRS. Thus, you are exempted from levies and penalties and are not required to make regular payments.
Penalty Abatement
Further possibilities for lowering fines are offered through The Fresh Start.
The biggest advantage of enrolling in the Fresh Start Program is peace of mind. Your tax problems when resolved will relieve a lot of your stress and worry.