What Fresh Start changed
In February 2011, the IRS announced changes to help people and small businesses who were struggling to pay. Among them:
- Lien filing: the IRS raised the dollar thresholds at which it generally files tax liens, and made it easier to withdraw a lien after a balance is paid.
- Payment plans for small businesses: streamlined installment agreements became available to businesses owing up to $25,000, with 24 months to pay and direct-debit payments.
- Offers in Compromise: a streamlined offer process was expanded to more taxpayers, including those with incomes up to $100,000 and liabilities under $50,000.
Further changes followed in later years.
What it means for you today
Those changes became part of the IRS’s regular rules. Today, the options you’ll actually use are:
- The Simple Payment Plan for individuals who owe $50,000 or less.
- Other installment agreements for larger balances.
- Currently Not Collectible status for hardship.
- An Offer in Compromise when you can’t pay the full amount.
- Penalty relief.
A warning sign
If an ad says you “may qualify for the IRS Fresh Start program,” it’s describing these ordinary options as if they were special. That’s a common pitch from firms that sell on fear and hope. See tax relief scams.