⁠IRS Fresh Start Program

The US residents need to pay the taxes and some of the citizens are not able to pay their taxes. But the IRS can help the citizens in this. Today we will talk about the IRS Fresh Start Program which can help in offsetting tax liability. The residents who own the taxes and who have the tax debt on them then the IRS can help such residents. The residents have the option to pay part of the taxes. The IRS provides the option to pay part of the taxes now to avoid the penalties or interest.

This has two options the first is that the resident can pay the taxes in instalments over a specific time and the another option is to pay the taxes as per Offer in Compromise. This Offer in Compromise is known for the ⁠IRS Fresh Start Program. As per this option the residents can offset the taxes less than they own. As per this program the residents need to offer an amount to the IRS which would be equal or more than the Reasonable Collection Potential. Let’s know all about this program in the post with the qualification conditions and process for the application.

This IRS Fresh Start Program can help the residents to offset their tax liability. As per this Program the both taxpayer and IRS come to an agreement. The taxpayer has the choice to pay the less tax than they own and the IRS has the option to get the tax at the time. Here in this program the taxpayer has the option to pay the agreed tax amount in the instalment or lump sum. At the time of lump sum offer the twenty percent non refundable offer payment should be submitted while making the offer. But when the offer is rejected, that twenty percent payment will not be issued back.

⁠IRS Fresh Start Program lump sum payment could include the tax payment in five or fewer instalments for five months or less. At the time Periodic payment offers the offer amount will be payable in six or more monthly instalments. The taxpayer needs to pay the offer amount within twenty four months. In this the non refundable application needs to be submitted. This guide will include the qualification conditions with the process of application.

Fresh Start Program 2024- Overview

Post Title	⁠IRS Fresh Start Program
Year	2024
Name of the Country	USA
Managing Authority	Internal Revenue Service
Name of the Program	Fresh Start Program
IRS OIC Eligibility 2024	Qualified Citizen with Tax liability
Program Started In	2011
Objective	Reduce Tax Burden
Application Form	Form 656 B
Post Category	Finance
Official Page	www.irs.gov

IRS OIC Eligibility 2024

The taxpayer needs to file all the tax returns and all the estimated tax payments need to be offset.
The taxpayer should not be in Open Bankruptcy.
The taxpayer when applying for the current year should have the valid extension.
The taxpayer when is an employer then must offset the current year tax deposits with the previous two quarters also.
The individual tax filer must have earnings upto $1,00,000.
The married tax filer must have earnings upto $2,00,000.
The tax owed should be below $50,000.

IRS Fresh Start Program- Plans & Benefits

This OIC is really beneficial for the taxpayers. The residents who have high tax burdens can get some tax relief. The residents can have a reduction in their tax liability when the IRS accepts the offer. This means that the taxpayers can pay less taxes than they owned. But the IRS typically accepts the lesser offers. As we have discussed before this OIC has two options. The taxpayers can pay taxes in periodic payments or in lump sum. So this Program is beneficial for the residents who have high tax burdens and can pay some part of the taxes as of now.

How To Apply For IRS OIC Or Fresh Start Program?

Firstly the taxpayer needs to check their tax liability and then they should think about the application. But before application the qualification conditions for the OIC need to be fulfilled.
The taxpayer needs to make an offer to the IRS. When the offer is lump sum then the 20% of the offered amounts is payable with the Form 656. This 20% amount is non refundable. When the offer made is Periodic payment then the application fee of $205 is paid with the Form 656 and this $205 is also non refundable.
Now there are two situations the IRS can reject the offer where the non refundable payment is not paid back to the taxpayer. Then the other option is the IRS can accept the offer and you can then make the required tax payments.
Here are the short synopsis for the application package:

Step One: Gather your Information
Step Two: Fill out Form 433 A for self employed individuals.
Step Three: Fill out Form 433 B for Businesses.
Step Four: Attach Required Documentation.
Step Five: Fill out Form 656 OIC.
Step Six: Mail your Application to IRS.

Fact Check ⁠IRS Fresh Start Program

The IRS Fresh Start or OIC is reliable. The taxpayers can get this option every year. The residents with higher tax liability can apply for this. The provided data in the guide is reliable for both the eligibility conditions and application process. The more data can be available on the IRS portal.