Fresh Start Programs: A Path to Financial Freedom
The IRS and State Fresh Start Programs were created to help individuals and businesses struggling with tax debt. These programs offer a range of solutions, including:
Installment Agreements
Spread your payments over time in a manageable way. This program allows you to pay off your tax debt in monthly installments instead of a lump sum. It’s designed to make repaying your debt more manageable by breaking it down into smaller, more affordable payments
Offer in Compromise
Settle your tax debt for less than the full amount owed. This program allows you to negotiate with the IRS to reduce your overall tax debt. If you qualify, you can make a lump-sum payment or set up a short-term payment plan to settle your debt for less than what you owe.
Penalty Abatement
Reduce or eliminate penalties to ease your financial burden. This program helps you reduce or remove penalties that have been added to your tax debt. Common reasons for penalty abatement include reasonable cause, such as natural disasters, medical emergencies, or other unforeseen circumstances that prevented you from complying with tax obligations.
Lien Removal
Get tax liens removed to clear your credit and financial standing. A tax lien is a legal claim against your property due to unpaid taxes. The lien removal program helps you eliminate these liens by paying off your debt, entering into an installment agreement, or through other approved methods, thereby improving your credit score and financial situation.
Release of Wage Garnishments
Stop wage garnishments and regain control of your income. If the IRS is taking a portion of your paycheck to settle your tax debt, this program can help you stop the garnishment. We work with the IRS to set up alternative payment arrangements or prove financial hardship to release the garnishment and restore your full income.
Innocent Spouse Relief
Protect yourself from tax liabilities caused by a spouse. If your spouse or former spouse failed to report income or claimed improper deductions or credits, you may be eligible for Innocent Spouse Relief. This program allows you to be relieved of the responsibility for paying taxes, interest, and penalties if you meet certain conditions.
Currently Not Collectible (CNC) Status:
Pause collections if you’re unable to pay due to financial hardship. When you are placed in CNC status, the IRS temporarily stops collection actions against you, such as levies and garnishments, because you cannot pay your tax debt without significant financial hardship. This program provides temporary relief until your financial situation improves.
Partial Payment Installment Agreements
Make affordable monthly payments based on your ability to pay. Similar to regular installment agreements, this program allows you to pay off your tax debt over time. However, the monthly payments are reduced to an amount that you can afford, based on your financial situation.
Bank Levy Release
Remove levies on your bank accounts to access your funds. If the IRS has placed a levy on your bank accounts, this program can help you release the levy. We work with the IRS to resolve the underlying tax issue, set up payment plans, or demonstrate financial hardship to lift the levy and grant you access to your funds.