There are plenty of misconceptions floating around about the Fresh Start Program, a debt relief initiative introduced by the Internal Revenue Service (IRS). Unfortunately, these myths can be quite misleading and might even stop people from applying for this program, which could potentially alleviate their financial woes. In this article, we debunk some of these misconceptions to provide a clearer understanding of the Fresh Start Program.
Myth 1: The Fresh Start Program is a Scam
The Fresh Start Program is not a scam. It is an initiative from the IRS that is designed to help taxpayers who find themselves unable to settle their tax debts. While there are plenty of scammers who pose as the IRS to intimidate taxpayers, the IRS itself is a federal agency, and its programs, including the Fresh Start Program, are perfectly legitimate.
Myth 2: Only Businesses Can Benefit from the Fresh Start Program
This is not true. Although many businesses have indeed benefited from the Fresh Start Program, it’s not meant for businesses alone. The program also accommodates individuals who are overwhelmed by tax debts.
Myth 3: The Fresh Start Program Will Cancel All Your Debts
While the Fresh Start Program does make it easier for taxpayers to settle their debts, it does not necessarily cancel all debts. The IRS may forgive some penalties, but taxes owed still have to be paid, albeit in a more manageable repayment plan.
Frequently Asked Questions (FAQs)
Who qualifies for the Fresh Start Program?
Both individual taxpayers and businesses that owe taxes to the IRS and are struggling with payment can qualify for the Fresh Start Program. You’ll have to meet certain criteria stipulated by the IRS to be eligible.
Does the Fresh Start Program affect your credit score?
Entering into a payment plan with the IRS through the Fresh Start Program won’t directly affect your credit score. However, if you don’t adhere to the payment plan and default on your payments, the IRS can file a lien, which could negatively impact your credit score.
In Summary
The Fresh Start Program by the IRS is a beneficial initiative to aid taxpayers in paying off their debts. Ignoring these myths and focusing on the facts can help you determine if this program is the right choice for you. If you’re suffering from overwhelming tax debt, it would be beneficial to explore this program further.
