The IRS Fresh Start program is a program aimed at making it easier for taxpayers to pay back taxes and avoid tax liens. Every taxpayer can benefit from Fresh Start program. The objective of the program is to help financially-distraught taxpayers resolve their IRS tax problems rapidly. The Fresh Start program also helps in reducing the amount of tax liens issued. This innovative program makes it much easier for individuals to qualify for Offers in Compromise (OICs) and Installment Agreements.
Offer In Compromise (OIC)
This is an agreement between the IRS and a Taxpayer. This agreement settles the tax liabilities of a Taxpayer for less than the overall amount that the IRS claims is owed. If you are unable to settle your Tax Debt, Taxpayers can ask the IRS to permit you to pay a reduced amount via an offer in compromise (OIC) or negotiate a payment plan. This is a very complicated process and it is highly recommended that the Taxpayer make use of Metro Tax Relief to increase the acceptance of these types of offers.
Partial Payment Installment Agreement (PPIA)
This is an IRS payment plan where a Taxpayer pays their tax debt in reasonable monthly installments until the debt expires. Once the debt has expired, the tax debt is basically forgiven. Taxpayers who cannot pay their full tax liability have the opportunity to apply for PPIA or Offer in Compromise. Your monthly installments can be negotiated.
Currently Not Collectible (CNC)
At times, even after agreeing with the IRS about your tax debt, your current financial status makes it impossible for you to pay the IRS. If the IRS comes to an understanding that you are unable to pay both your reasonable living expenses as well as your taxes, your account will be placed in Currently Not Collectible status.
During the period of time your account is in CNC status, no collection activity will be carried out by the IRS. The IRS will not levy your income and assets. However, tax penalties and interest will still be charged on your tax debt by the IRS. Your refunds will be kept and used to settle any outstanding Tax Debt plus penalties and interest and fee’s assigned to your Tax Debt.