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Understanding the IRS Fresh Start Initiative

Launched in 2011, the IRS Fresh Start Initiative provides taxpayers with flexible options to manage their tax debt. It can help you pay off what you owe over time and avoid serious consequences like penalties, interest, tax levies, liens, asset seizures, and wage garnishments.

Previously called the Fresh Start Program, this initiative updates and expands existing IRS programs, making more taxpayers eligible for relief. The two most common options include extended installment agreements and Offers in Compromise (OIC). With an extended installment agreement, if you owe $50,000 or less, you can spread payments over six years without accruing extra penalties or interest. Through an OIC, you may be able to settle your tax debt for less than the full amount owed.

Self-employed individuals must show a 25% reduction in income.

Tax debt must not exceed $50,000 by the end of the tax year.

All required tax returns must be filed.

Any unfiled returns from previous years must be submitted before requesting relief under the Fresh Start Initiative. Working with experienced tax professionals, like those at Sky View Tax Resolution, can help ensure you meet all requirements, file outstanding returns, and choose the program that best fits your situation.

“Our experience with the TDN team was outstanding. They were highly professional, extremely knowledgeable, and genuinely courteous. Over 30 years, we had accumulated a massive amount of tax, penalties, and interest, which felt impossible to manage. TDN carefully reviewed our case, developed a clear plan, and represented us to the IRS. In a remarkably short time, we achieved an incredible result: a Fresh Start. We are grateful that, after receiving countless solicitations from tax professionals nationwide, we chose the right team: Sky View Tax Resolution.”

— Albert R.

Common Questions About IRS Fresh Start Initiative

Is the IRS Fresh Start Initiative real?

Yes, the IRS started its Fresh Start Initiative in 2011. It later expanded the initiative to be even more beneficial to taxpayers who owe less than $50,000 in unpaid taxes. Its updated guidelines can help both individual taxpayers and business owners in paying back taxes.

Can small business owners benefit from the Fresh Start Program?

Yes. Businesses who owe under $25,000 can set up a payment plan to pay off their tax liability over a two-year period.

If I have a federal tax lien, can the Fresh Start Initiative help me?

Fresh Start increased the threshold to $10,000 for filing a notice of federal tax lien. Taxpayers may get a lien withdrawal once their balance is either paid in full, or their balance comes under $25,000 and they are in a Direct Debit Installment Agreement.

How do I apply for the IRS Fresh Start Initiative?

Because the Fresh Start Initiative is not a single program, and the qualifications vary, you’ll want to speak to a tax debt relief professional who can walk you through the application process.