The Fresh Start Program is one of the leading debt forgiveness and management schemes. It was promoted by the Internal Revenue Service and aims to help taxpayers who have a federal tax debt that exceeds their ability to pay.
In this sense, there is the example of countries that offer the option of tax relief to certain taxpayers who owe money to the treasury.
The United States, for its part, is no exception to the rule and several of its households have had difficulties paying federal taxes.
Therefore, many US citizens wonder if the Internal Revenue Service (IRS) offers them a similar opportunity. Not a few wait to know if the tax debt is forgiven after a certain period of time.
If we follow this line, it is valid to mention that in 2021, more than half of American households did not pay federal income taxes. This because it was considered that they were unable to do so due to their financial situation.
What is being done about it?
To help more taxpayers, the IRS has expanded the Fresh Start program by adopting more flexible Offer in Compromise (OIC) terms.
An OIC is the agreement made between the taxpayer and the IRS that settles the taxpayer’s tax liability for less than the full amount owed.
However, the ICOs are subject to the acceptance of legal requirements. Therefore, the IRS examines a taxpayer’s income and assets to make a determination of the taxpayer’s reasonable collection potential.
There is a very important fact that most taxpayers are still not aware of.
The IRS has 10 years to collect the unpaid tax debt. Although, if he doesn’t do it during that decade, he is forced to forgive the debt due to the 10-year statute of limitations. On the other hand, the collection statute includes some guidelines that can extend the aforementioned term.
