The Internal Revenue Service (IRS) is always looking for ways to assist taxpayers in meeting their tax obligations. The Fresh Start initiative, launched a few years ago, exemplifies this commitment. With the dawn of 2024, adjustments and additions have been made to the initiative to make it more beneficial to a wide range of taxpayers. This article will explore what’s new in the IRS Fresh Start initiative in 2024.

Increased Threshold for Installment Agreements

In 2024, the IRS has raised the threshold for the Fresh Start program’s streamlined installment agreements. Previously, individuals who owed $50,000 or less in combined tax, penalties, and interest could benefit from these agreements. Starting in 2024, the threshold has been increased to $100,000 for the streamlined processing of installment agreements.

Improved Offer in Compromise

The Offer in Compromise (OIC) component of the Fresh Start initiative has also evolved in 2024. In an OIC agreement, the IRS agrees to accept less than the full amount a taxpayer owes if they can convincingly demonstrate an inability to pay the total debt. In 2024, the IRS has made it easier for taxpayers to qualify for an OIC, making this a more viable option for additional taxpayers who are facing difficult financial circumstances.

Added Flexibility for Tax Liens

Hitherto, the IRS would file a Notice of Federal Tax Lien for any unpaid tax debt above $10,000. Starting from 2024, however, the threshold for filing has been raised to $25,000. This change dramatically reduces the number of tax liens filed each year and provides taxpayers facing financial challenges with extra flexibility and breathing room.

Frequently Asked Questions (FAQs)

What is the purpose of the Fresh Start initiative?

The Fresh Start initiative exists to help struggling taxpayers meet their tax obligations in a manageable way. By providing easier terms and more flexibility, the program seeks to minimize the financial strain of tax debts on individuals and families.

How do I qualify for the Fresh Start initiative?

The qualification for Fresh Start depends on the specific area of the program in question. It generally consists of assessing your tax debt, your income, and your ability to pay. It’s best to contact the IRS directly or consult with a tax professional to determine your eligibility.

What changes has the Fresh Start initiative seen in 2024?

In 2024, the Fresh Start initiative has expanded the threshold for streamlined installment agreements to $100,000, made it easier for taxpayers to qualify for the Offer in Compromise, and increased the threshold for filing a tax lien to $25,000.

In conclusion, the IRS Fresh Start initiative continues to evolve to meet the needs of taxpayers more effectively. The changes in 2024 highlight the government’s commitment to help taxpayers fulfill their obligations in a way that acknowledges their individual financial circumstances.