The IRS Fresh Start program makes it easier for taxpayers to pay back taxes and avoid tax liens, including small business taxpayers. There are three important features of the program, and include tax liens, installment agreements and Offers in Compromise.
In regard to 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, which is $10,000.
The Fresh Start program expanded access to streamlined installment agreements, now allowing individual taxpayers who owe up to $50,000 to pay through direct debit payments for up to six years.
An Offer in Compromise is an agreement that allows taxpayers to settle their tax debt for less than the full amount. The Fresh Start program expanded and streamlined the OIC program so the IRS now has more flexibility when analyzing a taxpayer’s ability to pay.
Generally, the IRS will accept a taxpayer’s offer if the IRS’s interests are met, which include receiving the most amount of owed funds within a reasonable amount of time. The IRS will not accept an offer if it believes that the taxpayer can pay the full amount owed by paying it in full or through a payment agreement.