What is the Fresh Start Tax Program?
The Fresh Start Tax Program, also known as the IRS Fresh Start Initiative, is a program designed by the Internal Revenue Service (IRS) to help taxpayers pay off their back taxes and move on with their lives. The program provides a number of options and solutions to help taxpayers who have fallen behind on their taxes to get back on track. It offers penalty relief, payment options, and other assistance to taxpayers who qualify. The program was first introduced in 2011, and has been extended several times since then.
Who Qualifies for the Fresh Start Tax Program?
The Fresh Start Tax Program is available to taxpayers who owe back taxes to the IRS. The program does not provide assistance to taxpayers who owe taxes to other government entities, such as state and local governments. Generally, taxpayers who owe more than $50,000 in taxes are not eligible for the Fresh Start Tax Program. Additionally, taxpayers who have previously been convicted of tax fraud or evasion are not eligible for the program.
What Benefits Does the Fresh Start Tax Program Offer?
The Fresh Start Tax Program offers several benefits to taxpayers who qualify. It reduces penalties and interest charges associated with unpaid taxes, which can significantly reduce the amount owed. Additionally, the program allows taxpayers to set up payment plans with the IRS, which can make it easier to pay off the taxes owed. The program also assists taxpayers with filing amended returns, which can help them get a refund if they are due one.
How Do I Apply for the Fresh Start Tax Program?
Applying for the Fresh Start Tax Program is a relatively simple process. Taxpayers must first fill out an IRS Form 9465, which is used to request a payment plan. The form must be filled out completely and accurately, and must be accompanied by all necessary paperwork. Once the form is submitted, the IRS will review the application and determine if the taxpayer is eligible for the program.
What Happens After Applying for the Fresh Start Tax Program?
Once the application has been submitted, the IRS will review it and determine whether or not the taxpayer is eligible for the program. If they are approved, the taxpayer will receive a notice from the IRS with the details of the payment plan. The taxpayer will then have to make the agreed-upon payments in order to stay in compliance with the program. If the taxpayer fails to make the payments on time, the IRS may revoke the payment plan and the taxpayer may be subject to additional penalties.
What if I Can't Afford the Payments for the Fresh Start Tax Program?
If the taxpayer is unable to make the payments for the Fresh Start Tax Program, they can contact the IRS to modify the payment plan. The IRS may be able to reduce the payments or extend the payment plan if the taxpayer is facing financial hardship. Additionally, the taxpayer may be able to qualify for other IRS programs that can help them pay off their taxes, such as the Offer in Compromise program.
What Other Resources Are Available for Taxpayers in the Fresh Start Tax Program?
The IRS offers a number of resources to taxpayers in the Fresh Start Tax Program. Taxpayers can find information about the program on the IRS website, and can also contact the IRS directly with any questions or concerns. Additionally, taxpayers can seek assistance from a tax professional if they need help understanding the program or filing their taxes.
Conclusion
The Fresh Start Tax Program is a great way for taxpayers to get back on track and pay off their back taxes. The program offers a number of benefits, such as penalty relief and payment plans, to help taxpayers get back on track. Taxpayers must still file their taxes and make payments in order to stay in compliance with the program, but with the help of the Fresh Start Tax Program, taxpayers can become tax compliant and move on with their lives.
