What to Know About the 2023 IRS Fresh Start Program 

Do you have federal tax debt and are struggling to pay off your balance? The IRS understands that unexpected events like job loss and medical emergencies make it harder to take care of unpaid taxes. Help is available for Americans thanks to the IRS Fresh Start Program.

This guide covers everything you should know about this federal initiative, including who is eligible for it and the specific benefits.

What Is the IRS Fresh Start Program?

Do you have outstanding federal tax debt? The IRS Fresh Start Program provides debt relief while protecting you from tax liens and levies. This program does not forgive your debt, but it can make a huge difference in your financial situation by relieving some of your debt obligations. Qualified candidates will receive relief that fits their needs with four custom options.

Who Qualifies for the IRS Fresh Start Program?

Not everyone with tax debt can receive automatic relief. The IRS lays out specific criteria that candidates must meet to reap the benefits of this program. 

Those who file as a single taxpayer must make less than $100,000 a year, while married couples cannot make more than $200,000 annually to qualify. In addition, self-employed taxpayers need to suffer a 25% reduction in their yearly income and prove it to the IRS. 

The final qualification is to owe less than $50,000 in federal tax debt and have no history of missed payments to the IRS. 

Tax Debt Relief Programs

The IRS Fresh Start Program has four pillars, each of which comes with its own benefits. You may receive debt relief through the following options:

  • Offer in Compromise: This tax settlement reduces the total tax debt you owe if you comply with paying the full, adjusted balance.
  • Installment Agreements: You can make monthly payments to the IRS, which will cause the agency to stop sending you collection notices. However, the IRS will still charge you interest on your debt.
  • Currently Non-Collectible Status: The IRS will freeze your payment requirements until you can afford them. You must prove your financial woes to receive this status and can expect all future tax refunds to go directly toward your debt unless you can prove the refund is essential to your living expenses.
  • Penalty Abatements: You can accrue various tax penalties if you fail to pay your debts. This IRS Fresh Start Program tier excuses you of penalty fees of up to $100.

If you’re unsure which option suits your financial situation, the helpful team at Levy & Associates Tax Consultants can guide you before moving forward. 

How To Apply for the 2023 IRS Fresh Start Program

If you fit the criteria for this initiative, gather all documentation supporting your qualification and mail it with your program request to the IRS. Certain documents that prove your financial hardship include:

  • Student loan statements
  • Medical bills
  • Insurance claims
  • Birth or death certificates of immediate family members

You must also include your unfiled tax returns and a personal letter that explains your financial situation. Outline in this letter why you are unable to pay your outstanding balance. Finally, make sure that your current tax withholdings are correct and that you have current estimated payments. 

Contact Levy & Associates Tax Consultants for Effective Tax Solutions

If you qualify for the 2023 IRS Fresh Start Program, a tax professional can walk you through your options so you can move toward tax debt relief. Fill out our convenient online contact form to get a free tax review. To speak with an advisor, call Levy & Associates Tax Consultants at (561) 933-6705 (Delray Beach, FL, office) or (313) 367-0985 (Lathrup Village, MI, office).

Contact Levy & Associates for Dependable Tax Audit Services

Levy & Associates is available for free initial consultations. We’re happy to answer any questions you have about the audit process or address any concerns about your specific situation.

There’s never a good time to be audited, and the time-consuming process will take away from your business or family if you try to face it alone. Let us handle and coordinate communication, so you can return to your daily life.