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The IRS Fresh Start initiative expanded several programs to help taxpayers struggling with unpaid tax debt. The Fresh Start program increased the threshold to qualify for a streamlined installment agreement from $25,000 to $50,000, if the balance can be paid in full within six years (previously five years).

You must have been unemployed for a minimum of 30 consecutive days during 2011 or before April 15 2012. Married couples filing jointly need to have only one spouse that meets the qualifications. Individuals who are self-employed need to be able to show at least a 25 percent drop in their net income.

Self-employed individuals must provide proof of a 25% drop in their net income. Joint filers cannot earn more than $200,000 a year and single filers cannot earn more than $100,000. Your tax balance must be below $50,000 at the end of the year in order to qualify.

A Summary of the IRS Fresh Start Initiative. ... In reality, the IRS officially launched the Fresh Start initiative (FSI) in 2011 in order to help taxpayers get a "fresh start" with their tax debt. The goal of the program was to help taxpayers and small businesses with paying back taxes and avoiding tax liens.

Can the IRS Settle My Taxes for Less Than What I Owe? Yes If Your Circumstances Fit. The IRS does have the authority to write off all or some of your tax debt and settle with you for less than you owe. This is called an offer in compromise, or OIC.

Qualifying for the Fresh Start Program Self-employed taxpayers must provide proof of a 25 percent drop in their net income. Taxpayers can't earn more than $200,000 per year for married couples filing jointly or $100,000 for single filers. Tax balance must be below $50,000 at the end of the year to qualify.

In order to qualify for the IRS Fresh Start initiatives for debt settlement or lien withdrawals, generally you'll need a couple of things at a minimum: The first is that any missing or unfiled tax returns must be filed.

That's why the government offers IRS debt forgiveness when you can't afford to pay your tax debt. Under certain circumstances, taxpayers can have their tax debt partially forgiven. ... This means the IRS can't collect more than you can reasonably pay.

In general, the Internal Revenue Service (IRS) has 10 years to collect unpaid tax debt. After that, the debt is wiped clean from its books and the IRS writes it off. This is called the 10 Year Statute of Limitations. It is not in the financial interest of the IRS to make this statute widely known.

A Summary of the IRS Fresh Start Initiative. ... In reality, the IRS officially launched the Fresh Start initiative (FSI) in 2011 in order to help taxpayers get a "fresh start" with their tax debt. The goal of the program was to help taxpayers and small businesses with paying back taxes and avoiding tax liens.

What is the IRS Fresh Start Program? The IRS Fresh Start Program is a program that is designed to allow taxpayers to pay off substantial tax debts affordably over the course of six years. Each month, taxpayers make payments that are based on their current income and the value of their liquid assets.

It's been terrible, he says of his experience trying to negotiate with the IRS. ... If you can't pay the taxes you owe the government, you have only two options: negotiate a payment plan or ask the IRS to allow you to pay a reduced amount through an offer in compromise (OIC).

Visit IRS.gov for information on Payment Plans Installment Agreements. A taxpayer must file all required tax returns first before the IRS can consider a settlement offer. When applying for a settlement offer, taxpayers may need to make an initial payment. The IRS will apply submitted payments to reduce taxes owed.

Offer in Compromise Qualifying Calculations The calculation takes the Total Debt Owed to the IRS and subtracts your Total Assets. The result is the IRS Debt less Total Assets amount. You multiply your Available Monthly Income times the Months Remaining for the Statute.

An offer in compromise allows you to settle your tax debt for less than the full amount you owe. It may be a legitimate option if you can't pay your full tax liability, or doing so creates a financial hardship.