The IRS has a Fresh Start program that helps individual taxpayers who owe taxes. This program makes it easier for taxpayers to pay back taxes and avoid tax liens. Small business taxpayers may benefit from Fresh Start. There are three important features of the Fresh Start program:
Tax Liens: The Fresh Start program increased the amount that taxpayers can owe before the IRS generally will file a Notice of Federal Tax Lien. That amount is now $10,000. However, in some cases, the IRS may still file a lien notice on amounts less than $10,000.
Installment Agreements: Individual taxpayers who owe up to $50,000 can pay through monthly direct debit payments for up to 72 months (six years). The IRS generally will not need a financial statement, they may need some financial information from the taxpayer.
Offer In Compromise: An Offer in Compromise is an agreement that allows taxpayers to settle their tax debt for less than the full amount. Fresh Start expanded and streamlined the OIC program. The IRS now has more flexibility when analyzing a taxpayer’s ability to pay. This makes the offer program available to a larger group of taxpayers.