We've only briefly covered the basics of this program. We are available to answer any questions you may have, to give you a definitive answer about eligibility, and to help you apply for the Fresh Start Initiative. No matter what your situation, our friendly, qualified tax professionals can help you find the best way to move forward.

You should have understood this article if you owe the IRS and cannot pay your tax debt fully.

You may also be eligible for Fresh Start if your business owes tax. These requirements will apply to you:

By claiming the Child Tax Credit (CTC), you can reduce the amount of money you owe on your federal taxes. The amount of credit you receive is based on your income and the number of qualifying children you are claiming.

Use the IRS's prequalifier tool to determine if you are eligible for an agreement in compromise. Even if your offer is approved, it is not guaranteed.

Without sufficient evidence, the IRS will not accept any request for tax relief under the Fresh Start Initiative. Send as many supporting documents as possible when submitting a request. The best evidence to support the strict IRS Fresh Start Program requirements is documentation. Documentation you will need to include, but is not limited, doctor/medical reports, fire department reports and insurance claims. You also need student loan statements, student loan statements and death certificates from family members. A letter explaining your personal circumstances and the reasons you cannot pay your tax debt should be included with your Form 843. To be eligible for tax relief under the Fresh Start Program, all missing or unfiled tax returns must be filed. Your estimated tax payments must also be current and your withholdings must be accurate. All filings from the past six months must also be correct or current. Contacting a professional tax relief firm is the best way to avoid your request being denied. A tax relief company can assist you in filing a letter of appeal even if your request is denied by the IRS.

In 2020, the IRS released final regulations that increased the OIC user fee to $205 from $186. While a 10% increase may seem like a lot, it’s only a small part of the potential cost of an OIC. The user fee usually does deter many people from applying for an OIC. The real cost is how much you will need to settle the tax bill. This amount is called the offer amount and represents a calculation of how much the IRS will accept to settle a tax bill.

The program's basics are covered in this article. Contact us if you have further questions or would like to know if you are eligible for the program. Whatever your situation, our tax professionals are qualified and experienced to help you.

If a taxpayer believes he or she qualifies, the taxpayer completes a financial statement on a form provided by the Internal Revenue Service. Wage earners and self-employed individuals use Form 433-A. Form 433-B is for Offers involving all other business types. These financial statements identify all assets and liabilities as well as disposable income.

“Helping my clients get their life back on track resolving tax debts makes my job incredibly rewarding. That’s probably why I enjoy doing taxes so much. I help people save money and solve their tax problems everyday at Ideal Tax.”

The IRS Fresh Start initiative might sound great, but you might not know if you are eligible for any tax relief.

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