As a CPA who handles IRS collection issues, it’s ironic and revealing when marketing firms call me, offering to “rescue” me from tax debts through the IRS Fresh Start Program. These unsolicited calls miss the mark and show a deep misunderstanding of my professional role and the program they tout.
This common confusion highlights a bigger problem: widespread misinformation about tax relief programs. Anyone with tax debts needs to understand the true nature and evolution of the Fresh Start Program.
The IRS Fresh Start Program: A Brief Overview
Introduced in 2011, the Fresh Start Program aimed to help taxpayers struggling financially by simplifying the process of paying back taxes and avoiding liens. Despite being advertised as ongoing, the program’s special initiatives have become standard IRS procedures. Here are the key changes:
- Lien Thresholds: The program raised the liens automatically filed on tax debts from $5,000 to $10,000.
- Installment Agreements: These agreements allowed more taxpayers to set up installment plans for debts up to $50,000 without detailed financial disclosure.
- Offers in Compromise: The program introduced more flexible terms, enabling some taxpayers to settle their debts for less than the full amount owed.
Evolution of the Program
The Fresh Start Program started as a pilot project introducing more forgiving methods for managing tax debt. Its success resulted in these methods being permanently adopted into the IRS’s regular procedures. This transition from a temporary measure to standard practice often leads to misunderstandings due to the program’s initial marketing.
Misleading Advertisements
Today’s advertisements can mislead taxpayers by portraying the Fresh Start Program as either still running or as a special relief effort. In reality, the beneficial changes introduced are now just routine IRS procedures.
Understanding these details about the Fresh Start Program can help taxpayers manage their responsibilities more effectively and avoid confusion and scams.
