Tax Tip #222

To qualify for the Fresh Start Program (FSP), taxpayer must owe no more than $50,000 in combined back taxes, interest and penalties and be current on all federal tax filings. Small business owners with up to $25,000 in payroll taxes may also qualify. There are no income requirements. 

• Criteria to qualify: 
• Filed all required tax returns for the previous 3 years
• Pay taxes owed within 6 years 
• Made all required estimated tax payments for the current year 
• Not involved in any tax evasion or fraud activities 

Benefits of the IRS FSP include: 

• Prevention of tax liens being filed against a taxpayer 
• In some cases, removal of a tax lien that has already been placed 
• Reduction in penalties and interest on penalties
• Payment Flexibility — extended time frames without severe penalties
• No requirement to disclose income or assets to the IRS 

In trouble with the IRS & looking for a fresh start? Contact a team member for assistance.