The total combined net assets of the applicant and spouse may not exceed $75,000 as of December 31 of the preceding year for which relief is sought.

It's simple, yes. Both the IRS and you, as taxpayers, will be benefited by the Fresh Start initiative. The IRS will win because they will be compensated for their efforts rather than being "ghosted" by the taxpayer. The IRS wins because they will get back in good standing. This means that they won’t be hit by levies and liens, wage garnishments or criminal penalties, nor fines.

Financial aid applicants are not eligible for the Academic Fresh Start Program. The student might not be eligible for financial aid due to their academic performance.

This is just a brief overview of the program. You can contact us with any additional questions, for a clear answer on eligibility or to learn more about the Fresh Start Initiative. No matter your situation, the qualified, knowledgeable, and friendly tax professionals at Tax Pros will help guide you.

The IRS is open to working with consumers who are in default on their taxes. But first, you have to prove your eligibility. Learn about the criteria for "offer in compromise" programs.

The IRS issued final regulations in 2020 that raised the OIC user fees from $186 to $205. Although a 10% increase may seem excessive, it is only a fraction of the cost of an OIC. Many people are discouraged from applying for OICs by the user fee. The actual cost of the OIC is how much you'll need to pay for your tax bill. This is known as the offer amount. It represents the amount that the IRS will accept in order to settle a tax invoice.

The Academic Fresh Start Program does not apply to the Standards of Academic Progress for financial aid applicants. Therefore, the student may not qualify for financial aid based on prior academic performance.

You can hire a qualified tax professional or tax relief company to help you do the paperwork, but it’s not required, and the money you pay them might be more than the money you’re hoping to save on your taxes.

Another bad news is that the IRS will generally not allow you count college expenses or private school expenses, charitable donations, voluntary retirement contributions, or payment on unsecured loans.

The Academic Fresh Start Program does NOT apply to Financial Aid applicants who have met the Standards of Academic Progress. Accordingly, financial aid may not be available to students who have poor academic records.

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

While you wait for the IRS decision on whether to make you an offer of compromise, you can still make payments.