What Is the IRS Fresh Start Program?

The IRS Fresh Start Program is a set of initiatives the IRS introduced to help struggling taxpayers resolve back tax debt more easily and get back into compliance with the tax system. The program expanded access to installment agreements — more taxpayers can now qualify for streamlined payment plans without providing detailed financial information, up to a balance of $50,000. Fresh Start also made it easier to qualify for an Offer in Compromise, the program that lets qualifying taxpayers settle their debt for less than the full amount, by relaxing the financial analysis the IRS uses to evaluate ability to pay. Under Fresh Start guidelines, the IRS generally won't file a Notice of Federal Tax Lien until a balance owed exceeds $10,000, giving more taxpayers time to pay before their credit is affected by a federal tax lien. The program also includes first-time penalty abatement, which automatically removes certain penalties for taxpayers with a clean prior compliance history.