What Is the IRS Fresh Start Program Application Process?

If you’re looking for help with tax debt you can’t afford to pay, you’ve probably come across the “IRS Fresh Start Program” and are wondering if this is the solution you need?

But if you’ve then gone to the IRS website looking for information on the Fresh Start Program application process, you’ll probably hit a dead end… 

This is because – although still widely used across the tax industry to describe a range of IRS initiatives that help taxpayers manage and overcome their tax debts – the IRS no longer officially uses the term “Fresh Start Program.” 

But don’t worry – while the name might have changed, the individual components that made up the program are still very much in place. In fact, many of the initiatives have been improved and expanded since they were first introduced, providing taxpayers with even more options for help with their tax debts.

So it’s absolutely still possible to apply for and benefit from the Fresh Start tax relief program. You just need to understand what the individual initiatives are, which ones you’re eligible for, and how to apply for each one.

In a previous blog, we covered the basics of the IRS Fresh Start Program, what it is, and how it works. In this one, we’ll cover more about exactly what the IRS Fresh Start Program application involves.

Short on Time? Here’s a quick summary of what’s ahead: 

What is the IRS Fresh Start Tax Program?

The IRS Fresh Start Program application process

Payment plan options under the Fresh Start Tax Program

How difficult is it to get my case accepted?

How Tax Relief Helpers can help you get a fresh start

What is the IRS Fresh Start Tax Program?

Although the term “Fresh Start Program” might sound like a formal, structured program, it’s not a single program that you apply to. Instead, it’s an umbrella term for a series of IRS tax relief initiatives. 

The IRS Fresh Start Program was launched in 2011 with the primary goal of making it easier for taxpayers to pay off their tax debts and avoid some of the more severe penalties associated with unpaid taxes. 

It encompassed four main tax relief initiatives:

1. Installment agreements
2. Offer in Compromise (OIC)
3. Penalty relief 
4. Higher threshold for tax liens

The components of these four schemes were all adjusted to make them more accessible to a broader range of people, giving more Americans the opportunity to meet their tax obligations without the burden of excessive penalties and aggressive collection efforts.

While the IRS no longer refers to it under this official name, the initiatives all still exist, and in many cases have since been adjusted even further to benefit even more taxpayers. 

And although it’s no longer the official name, the term “Fresh Start” is still commonly used in the industry – because these initiatives still provide the opportunity for what many taxpayers desperately need: a fresh start.

The IRS Fresh Start Program application process

As it isn’t a singular program, there isn’t a single “IRS Fresh Start Program application” you can fill out. 

Instead, it’s a case of identifying the individual initiatives that are applicable and suited to your unique case and circumstances, and applying for each individually. 

Here’s a brief overview of each initiative included in the Fresh Start tax program and how you can apply:

• Installment agreements
  
  • What it is: An installment agreement allows you to pay your tax debt over time in monthly installments. The Fresh Start Program includes various payment plan options, and has made it easier to qualify for streamlined installment agreements if you owe $50,000 or less.
    
  • How to apply: You can apply online using the IRS Online Payment Agreement tool, or by submitting IRS Form 9465 (Installment Agreement Request).
    
• Offer in Compromise (OIC)
  
  • What it is: An Offer in Compromise lets you settle your tax debt for less than the full amount owed. The IRS may accept an OIC if paying your full tax debt would cause you significant financial hardship.
    
  • How to apply: You need to submit IRS Form 656 (Offer in Compromise) along with Form 433-A (OIC) for individuals, or Form 433-B (OIC) for businesses. The Fresh Start Program expanded the criteria for OICs, making it more accessible for taxpayers who are struggling financially.
    
• Penalty relief
  
  • What it is: Penalty relief helps reduce or eliminate penalties that have accumulated due to late filing or unpaid taxes, particularly if it’s your first time getting behind or you have a reasonable explanation.
    
  • How to apply: Depending on your circumstances, you can request penalty relief by filing IRS Form 843, or by calling the IRS and explaining your situation.
    
• Avoiding or removing tax liens
  
  • What it is: A tax lien is a legal claim against your property due to unpaid tax debt. The Fresh Start Program raised the “standard” threshold for filing a federal tax lien, meaning far fewer taxpayers automatically face this severe consequence. However, bear in mind that the IRS can still issue a tax lien on any amount of tax debt and will do so if they believe there’s a risk of not collecting the tax owed – e.g. if you are ignoring correspondence attempts, have a poor compliance history, are already liquidating assets, or are facing bankruptcy.
     
  • How to apply: To avoid a lien, ensure your debt is below $10,000, or set up an installment agreement. If a lien has already been filed, you can request a withdrawal using IRS Form 12277 (Application for Withdrawal of Filed Form 668(Y), Notice of Federal Tax Lien) after paying off your debt or entering into an installment agreement.

While these initiatives can offer significant relief, unfortunately, navigating the IRS Fresh Start Program application processes on your own can be difficult. 

There are strict and specific qualifying criteria for each program, each requires a different approach, and there are often a variety of different options available to you – so understanding which one(s) are best, not to mention successfully negotiating the best deal, can be challenging. 

But this is where we come in. Tax Relief Helpers is a team of passionate and knowledgeable tax experts who know and understand all the ins and outs of the Fresh Start Program and other IRS tax relief programs. We can evaluate your situation, identify your best options, handle the applications to ensure you qualify, and negotiate the best possible agreements with the IRS on your behalf. 

Request your free consultation now

Payment plan options under the Fresh Start Tax Program

Installment agreements are one of the most utilized aspects of the Fresh Start Program thanks to their broad eligibility. 

Streamlined installment agreements in particular have always been a core part of the Fresh Start Program. They are a simplified type of long-term agreement for people who owe $50,000 or less, and which most people automatically qualify for. These agreements don’t require you to submit a detailed financial statement and so can be set up more quickly. 

However, the IRS offers several payment plan options to accommodate different needs and financial situations. These include:

• Partial payment installment agreements: Allows you to pay off your tax debt over time, but only a portion of the total amount due. The IRS agrees to this arrangement when full payment isn’t feasible.
• Short-term installment agreements: Typically used for debts that can be paid off within 120 days. This option is straightforward and doesn’t usually require a detailed financial statement.
• Long-term installment agreements: For larger debts that need more time to be repaid. Payments are spread out over several years, with up to 72 months (six years) available under the Fresh Start Program.
• Streamlined installment agreements: Simplified agreements for those who owe $50,000 or less, allowing you to avoid a more complex application process.

Each of these options comes with its own set of criteria, and it can be tricky to determine which one is the best fit for your circumstances. That’s where Tax Relief Helpers can step in. We’ll explain the differences in detail, help you work out the most suitable option for your situation, and negotiate with the IRS on your behalf to secure the best possible deal.

Get help with your tax debt

How difficult is it to get my case accepted?

The difficulty of getting various components of the Fresh Start Program approved depends on the relief options you’re applying for. 

Generally speaking, payment plans and penalty relief are the easier aspects to get accepted, as the qualifying criteria are broader and so apply to more people. 

Offer in Compromise (OIC) and other similar IRS relief programs like Currently Not Collectible (CNC) status, where you are asking the IRS to reduce your total debt or halt collection efforts entirely, have far more stringent eligibility criteria and so are much harder to get approved.

Here’s an overview of what you need to know about getting your IRS Fresh Start Program application approved:

• Eligibility criteria: The IRS considers various factors when determining whether to accept an application, including the size of your tax debt and your tax compliance history, and your detailed financial situation – including your income, expenses, assets, and overall ability to pay. For Offers in Compromise, the IRS will also evaluate your future earning potential and current financial hardship.
• Documentation: One of the biggest hurdles taxpayers face is meeting the IRS’s documentation requirements. Providing complete and accurate information is critical to avoid delays or rejections. Additionally, proving financial hardship, particularly for an OIC, can be challenging without expert assistance. 
• Knowing what to request: A key to getting your applications approved is requesting the right “thing.” For example, how much to offer in compromise, or the right installment agreement duration to request, is all based on specific calculations and criteria, and getting this wrong will affect your chances of success. 

The Fresh Start Program is designed to help taxpayers, but it’s still a complicated and often stressful process. Having a professional on your side can make a significant difference. 

Speak to Tax Relief Helpers

How Tax Relief Helpers can help you get a fresh start

Facing tax debt can be overwhelming and isolating, leaving you feeling trapped by mounting penalties, interest, and the fear of IRS enforcement actions. It’s a stressful situation that many people find themselves in, but it’s important to remember that you’re not alone – help is available. 

The Fresh Start tax program and other tax relief initiatives offer viable paths to regain control of your finances and reduce the burden of tax debt.

However, navigating these options can be complex, and making mistakes in the process can lead to missed opportunities for relief. That’s where Tax Relief Helpers can make a significant difference.

We understand the stress and anxiety that come with dealing with the IRS, and our team of experienced tax professionals is here to guide you through every step of the process. 

Here’s how we can help:

• Personalized assessment: We’ll start by evaluating your financial situation and tax debt to identify which Fresh Start options or other IRS relief programs you qualify for.
• Expert guidance: We’ll help you gather the necessary documentation to strengthen your case, and our team will then handle all the individual Fresh Start Program applications on your behalf, ensuring that all forms are completed accurately and submitted on time. 
• Negotiation on your behalf: Dealing with the IRS can be intimidating, but you don’t have to do it alone. We’ll negotiate directly with the IRS on your behalf, aiming to secure the most favorable terms possible – whether it’s a lower monthly payment, a reduced overall debt, or relief from penalties.

You don’t have to face your tax debt alone. By working with Tax Relief Helpers, you can take the first step toward financial recovery and peace of mind. Ready to get started? Contact us today and let us help you secure the fresh start you deserve.