Fresh Start Tax Relief Program – New Update From IRS for 2023 - Mayday Finance - Get Best Investment Advice

According to a recent announcement from the IRS, The 2023 tax season will officially start on January 23 and is expected to end on April 18. The pandemic has affected the last three-years of tax filing season, so the IRS has implemented safeguards to ensure that Americans can complete their forms even more quickly. One such implementation was made in the IRS Fresh Start Program.

What is the IRS fresh start program?

To assist individuals in managing their outstanding tax obligation, the IRS launched the Fresh Start Program in 2011. One of the main goals of the IRS Fresh Start program was to oppose the use of harsh collection techniques by the federal government to punish people and small businesses who have unpaid tax arrears. These techniques included fiscal penalties and tax liens.

One requirement of the Fresh Start Initiative in 2023 is that the taxpayer’s outstanding duty debt must be less than $50,000.
The debt must be repaid in less than five years, and the applicant cannot have previously missed IRS tax payments.
You should be prepared to comply with the direct payment structure’s requirements and be up to date on your tax filings for the current tax year.

The IRS Fresh Start program offers four choices for reducing tax debt:

· Offers in compromise

OIC enables qualifying taxpayers to provide a lower settlement that the IRS will accept instead of full payment of their tax arrears.

· Installment arrangements

Installment agreements enable qualified taxpayers to pay their taxes until they are entirely paid by allowing them to make manageable monthly payments to the IRS.

· Currently non-collectible

CNC enables taxpayers who are experiencing financial difficulty to postpone their payments. It does not, however, eliminate your tax burden, rather, it postpones payments until you can repay them again.