In 2011, the Internal Revenue Service introduced a set of measures known as the IRS Fresh Start Initiative to support taxpayers facing financial hardship. The primary objective of the IRS Fresh Start Program was to make it easier for individuals and small businesses to meet their tax obligations without being overwhelmed by penalties or aggressive collection actions.
The IRS tax Fresh Start Program introduced several taxpayer-friendly changes, including expanded access to Offer in Compromise agreements, more flexible terms for installment agreements, and increased thresholds for filing tax liens. These modifications aimed to minimize the negative consequences of unresolved tax debt and help taxpayers take proactive steps toward compliance.
By offering multiple paths to resolve back taxes, the IRS Fresh Start Tax Program empowers financially distressed individuals and businesses to recover from setbacks. It encourages voluntary compliance while providing tools that make it possible to regain financial stability. Whether you're seeking fresh start tax relief or exploring your eligibility through the IRS Fresh Start tax relief program in Dallas–Fort Worth or anywhere else in the US, this program offers a lifeline for those in need of a second chance.
1. Federal Tax Liens
The IRS Fresh Start Initiative introduced significant changes to its lien filing practices to reduce the negative impact on taxpayers. These include:
2. Installment Agreements
The IRS Fresh Start Program for tax relief also expanded access to streamlined installment agreements, including for small businesses. The program raised the dollar threshold, allowing more taxpayers to participate in structured payment plans.
3. Offer in Compromise (OIC)
Under the Fresh Start Tax Program, the IRS expanded the Offer in Compromise program by adopting more flexible terms. This allows some of the most financially distressed taxpayers to resolve their tax debt more efficiently.
An OIC is an agreement between a taxpayer and the IRS to settle the taxpayer’s liabilities for less than the full amount owed. Generally, the IRS does not accept an OIC if they believe the liability can be paid in full as a lump sum or through a payment plan.
Recognizing that many taxpayers continue to struggle financially, the IRS introduced common-sense updates to the OIC process that better reflect real-world circumstances. The revised approach focuses on financial analysis to determine eligibility for an Offer in Compromise.
4. Currently Not Collectible (CNC) Status
When a taxpayer can demonstrate that satisfying their tax debt would leave them unable to meet basic living expenses, the IRS may place their account in “Currently Not Collectible” status. Under the Fresh Start Program:
5. Penalty Abatement
Penalties can often be the largest component of a tax bill. The Fresh Start Initiative expanded the IRS’s willingness to waive certain penalties under two main provisions:
Filing the right paperwork correctly is crucial for your IRS Fresh Start application. This is no single IRS Fresh Start application, but different forms for different relief options. Let’s look at the process:
You have three convenient options:
Following these steps improves your chances of swift approval and access to the Fresh Start debt relief program benefits.
Navigating the IRS Fresh Start Program can be complex. A local IRS tax attorney will:
When you partner with an experienced attorney in your state, you position yourself for maximum fresh start tax relief and avoid costly missteps.
Struggling with back taxes or looking for fresh start tax relief in Texas? Call us or fill out the Free Case Evaluation Form to schedule your FREE confidential consultation with our experienced IRS tax attorneys in our Dallas, Fort Worth, Frisco, or Houston office.
To qualify, you generally must:
Penalty abatement removes or reduces failure‑to‑file or failure‑to‑pay penalties when you qualify for first‑time abatement or demonstrate reasonable cause (e.g., illness or natural disaster). It does not forgive the underlying tax.
Yes. If you qualify for Innocent Spouse Relief, you can apply to have joint liability removed. You may then pursue Fresh Start relief, such as an Offer in Compromise or Installment Agreement, on your remaining individual balance.
A local IRS tax attorney will:
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We are proud to announce that Nick Nemeth, the founder and driving force at The Law Offices of Nick Nemeth, has been recognized as the "IRS Tax Lawyer of The Year" in the USA, by the prestigious FM Taxation Awards, validating his unwavering commitment to providing exceptional IRS tax representation and advocacy.
Whether dealing with IRS audits, tax liens, wage garnishments, or other tax controversies, our firm is dedicated to protecting your rights and helping you achieve the best possible outcome.
We are honored by this recognition and remain committed to delivering the highest standards of legal service for all your tax-related needs.