The IRS Fresh Start Program is a set of initiatives that the IRS offers to help taxpayers who are struggling to pay their taxes. The program was launched in 2011 with the goal of helping individuals and small businesses meet their tax obligations without adding unnecessary burden to taxpayers. The program has since been expanded and revised to offer more relief to taxpayers who owe taxes. The Fresh Start Program offers four options for paying past-due taxes, each with its own eligibility requirements. These options include:

• Penalty Relief: This part of the initiative relieves some unemployed taxpayers from failure-to-pay penalties. Penalties are one of the biggest factors a financially distressed taxpayer faces on a tax bill. The Fresh Start Penalty Relief Initiative gives eligible taxpayers a six-month extension to fully pay taxes.

• Installment Agreement: An installment agreement is a payment option for those who cannot pay their entire tax bill by the due date. The Fresh Start provisions give more taxpayers the ability to use streamlined installment agreements to catch up on back taxes and also more time to pay.

• Offer in Compromise: This is an agreement between a taxpayer and the IRS that settles the taxpayers tax liabilities for less than the full amount owed. The IRS expanded the Offer in Compromise (OIC) program to cover a larger group of struggling taxpayers under the Fresh Start Program.

• Currently Non-Collectible Status: This is a status that temporarily stops IRS collection actions against a taxpayer who cannot pay their tax debt. The IRS Fresh Start Program offers assistance in qualifying for this status.

To qualify for the Fresh Start Program, taxpayers must meet certain eligibility requirements, such as having filed all required tax returns for the past three years and having made all required estimated tax payments for the current year. The program is open to any taxpayer who owes taxes and is struggling to pay them, with no income requirements. The Fresh Start Program can help prevent a lien from being filed against a taxpayer, remove an existing tax lien, and reduce penalties and interest on penalties.