What is the IRS Fresh Start Program, and how do I know if I might qualify for it?

In recent years, as the economy has struggled here at home in Oklahoma and across the nation, the Internal Revenue Service (IRS) has implemented a program that it claims may help, rather than punish, taxpayers who are behind on paying their taxes.

Last year, changes were made to the IRS Fresh Start Program that could benefit you if you owe money to the federal government. Specifically, changes were made that allow taxpayers to:

  • Repay student loans and state and local taxes. These obligations may be considered when negotiating an Offer in Compromise with the IRS.
  • Reduce future income calculations. The amount of time that future income calculations are reduced depends on how quickly you intend to pay off your outstanding tax debt.
  • Account for credit card payments, bank fees, and charges when developing an Offer in Compromise.

The IRS maintains that the Fresh Start Program is designed to help people who are behind on their taxes. However, it is important to keep in mind that the IRS agent’s goal is to get the most amount of money as possible out of a delinquent taxpayer and to get that money as quickly as possible.

Thus, it is important to make sure that you know your rights and that you negotiate effectively with the IRS. For more information about how to do that, we encourage you to contact an experienced Norman tax lawyer today at 800-721-7054 and to read our FREE book, The Ultimate Survival Guide for IRS Problems.