What is the IRS Fresh Start Program and do I qualify?

The IRS Fresh Start Program, launched in 2011 and expanded since, is a set of initiatives designed to help taxpayers resolve their tax debt more easily. The program includes: expanded installment agreements (now available for debts up to $50,000 with up to 72 months to pay, without requiring detailed financial disclosure), streamlined Offer in Compromise with simplified application (Form 656), increased lien thresholds (the IRS won't file a lien for debts under $25,000 if you're in a Direct Debit Installment Agreement), and penalty relief for first-time offenders. You may qualify if you owe $50,000 or less in combined tax, penalties, and interest, can pay through direct debit, and can full pay within 72 months or the collection statute. For larger debts, Fresh Start still offers more flexible OIC terms. The program has made it significantly easier for taxpayers to resolve their debt without the IRS pursuing aggressive collection actions.