If you are curious about the qualifications for the IRS Fresh Start Program and if you qualify, this post should help!
The IRS fresh start program qualifications include:
- You must have been unemployed for 30 consecutive days in 2011 or before April 15, 2012
- Married couples filing together must have at least one partner who qualifies for the Fresh Start program
- Your tax balance must be less than $50,000 at the end of 2011
- If you are self-employed you must show a decrease of 25% or more in net income
- Married couples must not have earned over $200,000 or individuals must not have earned over $100,000 for the year
- According to IRS.gov taxpayers must use Form 1127, Application for Extension of Time for Payment of Tax Due to Undue Hardship
Benefits of the Fresh Start Program
According to H&R Block these are three of the most important benefits of the fresh start program:
- In most cases tax liens will only be issued if the amount exceeds $10,000.
- Individuals are able to spread out $50,000 or less with direct installment payments over 6 years (72 months).
- Taxpayers have expanded flexibility with Offer in Compromise (OIC) to determine a tax payer’s ability to pay.
Learn more about the IRS Fresh Start Program
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