IRS Fresh Start Program Requirements: 5 Key Criteria for Eligibility

The IRS Fresh Start Program offers tax relief to individuals who are struggling with unpaid tax debt. The program has several requirements that individuals must meet to qualify for its benefits.

1. Income Eligibility

To be eligible for the IRS Fresh Start Program, individuals must meet certain income requirements. The income limits are based on the taxpayer's filing status and the number of dependents they claim. For the 2023 tax year, the income limits are as follows:

• Single: $73,000
• Head of Household: $85,000
• Married Filing Jointly: $146,000
• Married Filing Separately: $73,000

Individuals who exceed these income limits may still be eligible for other IRS relief programs, such as installment agreements or offers in compromise.

2. Tax Debt Threshold

Individuals must have a tax debt of at least $5,000 to be eligible for the IRS Fresh Start Program. The debt can include back taxes, penalties, and interest. Individuals who owe less than $5,000 may still be able to qualify for other IRS relief programs, such as payment plans or hardship extensions.

3. Good Faith Effort to Pay

Individuals must have made a good faith effort to pay their taxes in the past. This means that they have filed their tax returns on time and have made regular payments on their tax debt. Individuals who have not made a good faith effort to pay their taxes may not be eligible for the IRS Fresh Start Program.

4. Inability to Pay

Individuals must be unable to pay their tax debt in full at the time they apply for the IRS Fresh Start Program. This means that they have explored all other options for paying their taxes, such as installment agreements or offers in compromise, and have determined that they cannot afford to pay their debt in full.

5. No Willful Neglect

Individuals must not have willfully neglected to pay their taxes. This means that they have not intentionally or recklessly avoided paying their taxes. Individuals who have willfully neglected to pay their taxes may not be eligible for the IRS Fresh Start Program.

Benefits of the IRS Fresh Start Program

The IRS Fresh Start Program offers several benefits to individuals who qualify for its benefits. These benefits include:

• Reduced or forgiven tax debt
• Reduced penalties and interest
• Extended payment plans
• Relief from tax liens and levies

How to Apply for the IRS Fresh Start Program

Individuals who meet the eligibility requirements for the IRS Fresh Start Program can apply for the program by completing IRS Form 656. The form can be downloaded from the IRS website or obtained by calling the IRS at 1-800-829-1040.

Tips and Tricks

Here are a few tips and tricks for applying for the IRS Fresh Start Program:

• Gather all of your tax information before you start the application process. This includes your tax returns, payment history, and any correspondence you have received from the IRS.
• Be honest and accurate on your application. The IRS will verify the information you provide, and any discrepancies could result in your application being denied.
• Be patient. The IRS Fresh Start Program application process can take several months to complete.
• If you are denied for the IRS Fresh Start Program, don't give up. You may still be eligible for other IRS relief programs.

FAQs

Here are some frequently asked questions about the IRS Fresh Start Program:

1. What is the income limit for the IRS Fresh Start Program?

The income limit for the IRS Fresh Start Program is $73,000 for single filers, $85,000 for heads of household, and $146,000 for married couples filing jointly.

2. How much tax debt do I need to have to qualify for the IRS Fresh Start Program?

You must have at least $5,000 in tax debt to qualify for the IRS Fresh Start Program.

3. What is considered a good faith effort to pay my taxes?

A good faith effort to pay your taxes means that you have filed your tax returns on time and have made regular payments on your tax debt.

4. What happens if I am denied for the IRS Fresh Start Program?

If you are denied for the IRS Fresh Start Program, you may still be eligible for other IRS relief programs. You can contact the IRS at 1-800-829-1040 to discuss your options.

5. How long does it take to complete the IRS Fresh Start Program application process?

The IRS Fresh Start Program application process can take several months to complete.

6. What are the benefits of the IRS Fresh Start Program?

The benefits of the IRS Fresh Start Program include reduced or forgiven tax debt, reduced penalties and interest, extended payment plans, and relief from tax liens and levies.

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