Who qualifies for IRS Fresh Start?
The IRS Fresh Start program is a vital initiative designed to help individuals and businesses who are struggling with tax debt find a way to resolve their financial issues with the Internal Revenue Service (IRS). This program offers a range of options to alleviate the burden of unpaid taxes, but not everyone is eligible. In this article, we will explore who qualifies for the IRS Fresh Start program and the criteria that must be met to take advantage of its benefits.
Eligibility Criteria for IRS Fresh Start
To qualify for the IRS Fresh Start program, individuals and businesses must meet certain criteria. Here are the key requirements:
1. Unpaid Tax Debt: The primary requirement for eligibility is having an unpaid tax debt. This can include personal income taxes, payroll taxes, or estate and gift taxes.
2. Income Verification: Individuals must provide proof of their income, which can be in the form of tax returns, W-2 forms, or other relevant documents.
3. Financial Hardship: Applicants must demonstrate that they are experiencing financial hardship, which may be due to job loss, medical expenses, or other unforeseen circumstances.
4. No Recent Tax Delinquency: Individuals who have not filed their tax returns for the past three years may still qualify for Fresh Start, but they must file all delinquent returns before applying.
5. No Outstanding Levies: If the IRS has placed a levy on an individual’s property, they must have resolved the levy or entered into a payment plan before applying for Fresh Start.
6. No Currently Collecting Liens: Individuals who have a tax lien in place must have resolved the lien or entered into a payment plan before applying for Fresh Start.
7. No Currently Pending Offer in Compromise: If an individual has already submitted an Offer in Compromise (OIC) and it is currently pending, they are not eligible for Fresh Start.
8. No Currently Pending Installment Agreement: If an individual has already submitted an Installment Agreement (IA) and it is currently pending, they are not eligible for Fresh Start.
Types of IRS Fresh Start Programs
The IRS Fresh Start program offers several options to help individuals and businesses resolve their tax debt:
1. Offer in Compromise (OIC): This allows individuals to settle their tax debt for less than the full amount owed, provided they meet certain criteria.
2. Installment Agreements: This option allows individuals to pay their tax debt in monthly installments over a set period, typically up to 72 months.
3. Partial Payment Installment Agreements: For individuals who cannot afford to pay their tax debt in full, this option allows them to pay a reduced monthly amount.
4. Currently Not Collectible (CNC): This status can be granted to individuals who are unable to pay their tax debt due to financial hardship, and the IRS will not attempt to collect the debt during this period.
Conclusion
The IRS Fresh Start program is a valuable resource for those struggling with tax debt. However, it is important to understand the eligibility criteria and the types of assistance available. By meeting the necessary requirements and exploring the available options, individuals and businesses can take the first step towards resolving their tax debt and regaining financial stability.
