The IRS Fresh Start Program is designed to help taxpayers who are struggling to pay their taxes. This program offers taxpayers relief from IRS penalties, extended payment plans, and other assistance. Knowing who qualifies for the Fresh Start Program IRS and what to consider before applying is important. This blog will discuss who qualifies for the program, five key considerations, and how to apply.
Who Qualifies for the IRS Fresh Start Program?
The IRS Fresh Start Program is designed to help taxpayers who are struggling to pay their taxes. The program is available to individuals, businesses, and other entities. It is important to note that the Fresh Start Program does not forgive taxes but rather offers taxpayers relief from IRS penalties, extended payment plans, and other assistance.
To qualify for the program, taxpayers must meet certain criteria. For example, taxpayers must have an Adjusted Gross Income (AGI) of $200,000 or less for individuals and $250,000 or less for couples filing jointly. Additionally, taxpayers must not have overdue or unfiled tax returns. Furthermore, taxpayers must not have any outstanding tax balances that are more than 24 months old.
Taxpayers who meet these criteria may be eligible for the Fresh Start Program. However, it is important to note that not all taxpayers are eligible for the program. For example, taxpayers currently in an installment agreement with the IRS or taxpayers convicted of tax fraud or evasion are not eligible for the program. To know more, consult with a tax consultation service.
Five Things to Consider
Tax Liability
The first thing to consider when applying for the Fresh Start Program is the amount of the taxpayer’s tax liability. This includes any unpaid taxes, interest, and penalties. The taxpayer’s tax liability must be within limits set by the IRS to qualify for the program.
Payment Plans
Consider whether the taxpayer can afford the IRS payment plan. The IRS Fresh Start Program offers extended payment plans for up to 72 months, depending on the taxpayer’s financial situation. To qualify for the program, taxpayers must prove they can afford the payment plan.
Penalty Relief
Consider whether the taxpayer is eligible for penalty relief. The IRS Fresh Start Program offers penalty relief for certain taxpayers who cannot pay their taxes on time. This includes waiving certain penalties and reducing others.
Asset Seizure
Consider whether the taxpayer is at risk of having their assets seized by the IRS. The Fresh Start Program allows taxpayers to avoid asset seizure by entering into a payment plan with the IRS.
Tax Returns
Consider whether the taxpayer has any overdue or unfiled tax returns. Taxpayers must file any overdue or unfiled tax returns to be eligible for the Fresh Start Program.
How to Apply
The application process for the Fresh Start Program is relatively simple. Taxpayers must fill out an application form, which is available on the IRS website. Taxpayers must provide the IRS with detailed information about their financial situation. This includes income, assets, expenses, and any other information the IRS requests. Once the application is complete, the IRS will review it and determine if the taxpayer is eligible for the program. If the taxpayer is eligible, the IRS will send them a notice outlining the terms and conditions of their payment plan. Taxpayers must then make their payments on time and in full to remain in the program and avoid penalties.