All You Need to Know About the Tax Relief & IRS Fresh Start Program

The Tax Relief and IRS Fresh Start Program was created to help taxpayers with unpaid taxes. The program offers several different options for taxpayers who need assistance with paying their taxes. Some of the options include payment plans, offer in compromise, and partial payment installment agreement. This overview will provide you with more information about the program and how it can help you if you owe taxes.

What is the Tax Relief & IRS Fresh Start Program?

The Tax Relief and IRS Fresh Start Program was created to help taxpayers with unpaid taxes. The program offers several different options for taxpayers who need assistance with paying their taxes. Some of the options include payment plans, offer in compromise, and partial payment installment agreement. 

The Payment Plan Option 

If you are unable to pay your taxes in full, you may be able to set up a payment plan with the IRS. There are two types of payment plans available: short-term and long-term. With a short-term payment plan, you agree to pay your tax debt within 120 days or less. If you cannot pay your tax debt within that time frame, you may be eligible for a long-term payment plan which allows you to extend your payments up to 72 months.  To apply for a payment plan, you will need to complete Form 9465 - Installment Agreement Request.  

The Offer in Compromise Option 

If you cannot pay your tax debt in full or through a payment plan, you may be eligible for an offer in compromise (OIC). An OIC is an agreement between you and the IRS that settles your tax debt for an amount that is less than what is actually owed. To be eligible for an OIC, you must meet certain requirements and follow specific procedures. For more information about OICs, visit the Offer in Compromise page on IRS.gov or review Form 656 - Offer in Compromise Booklet. 

Partial Payment Installment Agreement 

If you are facing financial hardship and are unable to pay your tax debt in full or through a traditional installment agreement, you may be eligible for a partial payment installment agreement (PPIA). With a PPIA, the amount of your monthly payment is based on what the IRS determines you can afford to pay after taking into consideration your essential living expenses. To apply for a PPIA, complete Form 9465 - Installment Agreement Request and submit it along with Form 433-F - Collection Information Statement for wage earners and self-employed individuals or Form 433-A - Collection Information Statement for businesses.  

Closing

The Tax Relief and IRS Fresh Start Program offers several different options for taxpayers who need assistance with paying their taxes. Some of the options include payment plans, offer in compromise, and partial payment installment agreement. If you owe taxes and need help paying them, this program can provide some relief. For more information about the program and how it can help you, visit the IRS website or speak with a tax professional.