Although the different names may understandably cause confusion for some, the IRS Fresh Start Initiative is the same as the Fresh Start Program, or the Fresh Start Tax Relief Program.

The Federal Government created the program, but the IRS is obligated to offer it to eligible American taxpayers who have current tax debt. This is why it is referred to as the IRS Fresh Start Program.

Throughout our process, you can talk to a tax expert if any questions should arise. To learn additional information about our services, read about our tax relief process.

For example, let’s assume a taxpayer owes the IRS $15,000 due to years of back taxes, plus compounded interest and penalties. 

This taxpayer may also be out of work, and barely able to afford utilities and living expenses. They may not have the means to pay the IRS $15,000, and most likely, they will never have the means to repay the IRS the amount they owe.

The Fresh Start Program mandates that the IRS cannot collect more than a taxpayer can pay. This helps the taxpayer reach an agreement with the IRS, and allows the taxpayer to pay an amount they can reasonably afford. 

“The financial situation of the taxpayer is the IRS’s primary criteria for evaluation.”

The taxpayer may have to fill out a form on the IRS website, call or email an IRS representative, or make an appointment to visit their local IRS office to determine eligibility before they are approved.

Once they submit the application, and it is received and processed by the IRS, they will find out if they qualify for Fresh Start tax relief.

After approval, the taxpayer will find out what the new amount of their payment will be. 

An Installment Agreement is a payment plan offered through the Fresh Start Program. It allows taxpayers to pay an agreed-upon amount every month to the IRS. These payments go directly to the taxpayer’s overall tax debt, and continue until the debt is paid in full.

Once you are on an installment plan, you will no longer receive IRS collection letters or be susceptible to penalties. This plan is also a great way to show the IRS that you are willing to resolve your debt.

A downside is that the IRS will continue to apply interest to your total debt, even if the amount you are required to pay monthly changes under the Fresh Start Program. With the ability of the IRS to include interest in your outstanding account amount, you will end up paying more than you originally owed.

While an Installment Agreement is a valid form of Fresh Start tax relief, compromising with the IRS for a reasonable monthly payment is difficult. Your chances of making smaller monthly payments are more likely if you use a professional tax relief company to represent you on your behalf.

An IRS Fresh Start Program Offer in Compromise, or OIC, is an agreement that allows taxpayers to resolve their tax debt for less than the full amount they owe. It is the best form of Fresh Start tax relief available through the Fresh Start Initiative.

Although an Offer in Compromise is the best option to reduce your tax debt through the Fresh Start Program, the qualifications are strict. This method is reserved only for taxpayers who are in difficult economic situations, and do not have the financial resources to pay off their federal tax debt in full.

Due to the strict requirements for an OIC, not everyone who owes thousands of dollars to the IRS will qualify for the program.

Your chances of achieving an Offer in Compromise increase tremendously if you have a certified tax relief company on your side. Tax experts have a skillful understanding of the IRS Fresh Start Program qualifications, and will not be bullied or tricked by the IRS into a less-than-optimal resolution.

Please refer to our “How to Avoid Tax Relief Scams” section to ensure that you stay away from fraudulent tax resolution companies in your search for professional tax relief representation. These companies will promise you an OIC without first analyzing your specific tax situation and preparing the necessary forms for the IRS. 

The IRS is the ONLY entity that can approve of an Offer in Compromise. 

The right tax relief company will be:

• Transparent about their process
• Experienced in negotiating with the IRS and getting results for their clients
• Will center their strategies around you and your financial needs.

Unlike the other three Fresh Start tax programs, Currently Non-Collectible Status is just that: a “status” rather than a form of Fresh Start tax relief. The IRS reserves the right to place a taxpayer in Currently Non-Collectible Status if the taxpayer cannot pay their taxes.

While this status does not necessarily remove tax debt, it does stop any collection activities. Such activity includes bank levies, wage garnishments, tax liens, and threatening letters from the IRS. Currently Non-Collectible Status allows a taxpayer to find Fresh Start tax relief in peace, without the IRS coming after them.

To qualify for Currently Non-Collectible Status, you will need to meet the IRS Fresh Start Program qualifications, which we discuss in more detail below.

We highly recommend that you consult with a tax professional before requesting this status from the IRS. Should you try to apply for the IRS Fresh Start Initiative Program on your own, the IRS may attempt to get you to agree to terms that are more favorable for them.

Additionally, once the time period of your Currently Non-Collectible Status ends, the IRS may begin again in their efforts to collect on payments, with phone calls and letters threatening penalties may continue.

A tax relief company can help you stay in Currently Non-Collectible Status for as long as possible, and can help you develop a strategy for when you leave Non-Collectible Status.