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.

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    Eligibility Criteria: Who Qualifies for the
    IRS Fresh Start Program

    Before you submit an application for an IRS Fresh Start program, make sure you meet the core requirements:
    • Debt ceiling: Owe less than $50,000 in unpaid tax (streamlined Installment Agreements) or up to $250,000 for other relief.
    • Filing compliance: All federal returns must be filed for the past 6 years.
    • Financial hardship: Demonstrate inability to pay in full without sacrificing basic living expenses.
    • Payment history: Current with any existing payment plans or agreements.
    • Self‑employed income decline: Documented drop in revenue may improve eligibility.
    Meeting these criteria doesn’t guarantee approval, but it’s the first step toward successful Fresh Start tax relief.

    What Relief does the IRS Provide?

    The IRS, under the Fresh Start Program, offers several forms of assistance to financially distressed taxpayers.

    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:

    • Significantly increasing the dollar threshold at which tax liens are generally issued, resulting in fewer filings.
    • Making it easier for taxpayers to obtain lien withdrawals after paying their tax bill.
    • Withdrawing liens in some cases where a taxpayer enters into a Direct Debit Installment Agreement.

    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:

    • Temporary Relief: All collection activity (including levies and garnishments) is suspended.
    • Periodic Review: The IRS re-evaluates CNC status annually, so you must update your financial information to maintain protection.
    • Accruing Interest: While penalties are halted, interest continues to accrue, so CNC status is best viewed as a bridge until your financial situation improves.

    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:

    • First-Time Penalty Abatement (FTA): Eligible for taxpayers with a clean compliance history (no penalties in the prior three years). The FTA can remove failure-to-file, failure-to-pay, and failure-to-deposit penalties once.
    • Reasonable-Cause Exception: Even if you don’t qualify for FTA, you may qualify for relief if you can show that circumstances beyond your control, such as serious illness, natural disaster, or unavoidable absence, prevented timely compliance.

    How to Apply: Navigating Your Fresh Start
    Tax Program Application

    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:

    • Gather documents: Income statements, expense records, IRS notices, and bank statements.
    • Choose your appropriate relief: Decide the appropriate relief form, whether it is an Installment Agreement (Form 9465), Offer in Compromise (Forms 656 & 433‑A), or other options.
    • Complete and review forms: Fill out the form carefully; errors lead to delays or denials.
    • Select Your Submission Method

      You have three convenient options:

      • Online: Many Fresh Start applications can be submitted through the IRS’s online portal (where available).
      • By Phone: Call the IRS Fresh Start hotline to discuss your eligibility and, in some cases, initiate agreements directly.
      • By Mail: Send your completed forms and supporting documents to the IRS address shown in the form instructions.
    • Submit and Confirm Receipt
      • If mailing, send via certified mail and keep your tracking number.
      • If applying online or by phone, note any confirmation or reference number provided.
    • Follow up: Track the status of your application. Respond immediately to any IRS requests for additional information to avoid further delays.

    Following these steps improves your chances of swift approval and access to the Fresh Start debt relief program benefits.

    Why Work with a Texas IRS Tax Attorney

    Navigating the IRS Fresh Start Program can be complex. A local IRS tax attorney will:

    • Ensure your Fresh Start application is accurate and complete
    • Advise on the best mix of relief options, including OIC, penalties, and liens
    • Represent you in negotiations and appeals
    • Leverage knowledge of Texas‑specific IRS processing nuances

    When you partner with an experienced attorney in your state, you position yourself for maximum fresh start tax relief and avoid costly missteps.

    NEED IRS DEBT RELIEF?

    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.

    Frequently Asked Questions

    The IRS Fresh Start Initiative is a suite of programs – launched in 2011 and updated through 2025 – designed to help taxpayers resolve back taxes affordably. It expands access to Installment Agreements, Offers in Compromise, penalty relief, and lien withdrawals for individuals and small businesses.

    To qualify, you generally must:

    • Owe less than $50,000 for streamlined Installment Agreements (up to $250,000 for other relief)
    • Be current on all required filings (past six years of returns)
    • Demonstrate financial hardship or inability to pay in full
    • Show compliant payment history (no recent defaults)
    • File all required tax returns.
    • Choose the appropriate relief path (e.g., Form 9465 for Installment Agreement or Forms 656 & 433‑A for Offer in Compromise).
    • Gather income, expense, asset, and liability documentation.
    • Mail your completed forms to the IRS address listed on the instructions.
    • Track via certified mail and respond promptly to any IRS follow‑up.
    An OIC lets you settle tax debt for less than the full amount owed if you genuinely cannot pay your full liability. It requires full financial disclosure and IRS approval based on your ability to pay, income, and asset equity.
    For balances up to $50,000, you can request a streamlined Installment Agreement (Form 9465) without a full financial statement. You’ll pay the tax over three to five years via monthly direct‑debit payments.

    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.

    Under Fresh Start rules, if your unpaid balance is under $25,000 and you set up a Direct‑Debit Installment Agreement, you may request IRS lien withdrawal. You can also request removal once the debt is fully paid.

    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.

    • Installment Agreements: Often approved within 30–45 days.
    • Offers in Compromise: Typically, 6–9 months for a decision.
    • Penalty Abatement or CNC status: Varies, but generally within 60–90 days of a complete request.

    A local IRS tax attorney will:

    • Confirm your eligibility for each Fresh Start option
    • Prepare accurate and complete applications (reducing risk of rejection)
    • Negotiate directly with the IRS on your behalf
    • Provide strategic advice tailored to Texas‑specific IRS processing

    Our Practice Areas

    Offer in Compromise

    An Offer in Compromise (OIC) is an agreement between the IRS and taxpayers that

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    Abatement of Penalties & Interest

    It seems like the Internal Revenue Service loves punishing taxpayers with

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    Many taxpayers are unable to pay their tax debt for a variety of reasons including simply

    IRS Fresh Start Initiative

    In 2011, the Internal Revenue Service announced a series of new steps to help people

    Tax Extension

    There are times when you cannot file your tax return before the deadline and need some

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    What Our Clients Have to Say

    Proud to have received
    “IRS Tax Lawyer of The Year, USA"
    at FM Taxation Awards 2024

    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.

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