Everything You Need to Know About the Fresh Start Initiative | Axiom Tax Resolution Group

The fresh start initiative, also called the fresh start program, is an amnesty program that the Internal Revenue Service started in 2011. It was established in order to help taxpayers resolve the unpaid tax debts that they have. 

The fresh start program allows some taxpayers that owe back taxes to file a tax return already considered completed. The IRS will propose a settlement that you can agree with. If you agree to this settlement, you will not be criminally prosecuted. You will also be able to avoid the collection of interest and penalties.

You can request this if you can prove that you can pay the offer within three years. Â In order to qualify for this program, you must be at least three months delinquent on your taxes.

You will also have to pay the non-filing or late filing penalty if you did not file your tax return or if you filed your tax return late. You cannot request the fresh start initiative if you knowingly evaded taxes. If you did not pay the taxes and did not file, you can still request the fresh start initiative. However, you must pay the taxes and penalties in full.

People Who Are Eligible for the Program

If you are eligible, you will need to create an online account with the IRS. You will need to make a financial statement when you create your account and make a payment for your taxes online. Then, you will need to complete a tax return that has been prepared for you by the IRS.

You will also need to agree to the terms of the IRS. The terms will include the payment amount and the amount of taxes owed. You can either pay the taxes owed by the date given to you or you will be eligible for the offer.

Fresh Start Initiative Program Repayment Options

There are a few different repayment options that you can choose from. If you chose one of the repayment options and are not able to pay the amount owed, you will be subject to tax penalties. The IRS might seize assets that you have.

Tax Lien Withdrawal

If you owe back taxes and the IRS has filed a tax lien, you can withdraw the lien with the fresh start initiative program. You can do this by making a request to the IRS and paying a percentage of the outstanding amount. You will have to pay a fee of $500 that will be collected by you or the IRS. When you withdraw the lien, the IRS will no longer have the authority to seize assets that you have.

Offer in Compromise (OIC)

This is one of the most difficult options that you can choose with the IRS. This is because you will have to pay the taxes owed in less than three years. You can request this OIC if you have a significant hardship that you can prove. This hardship could be a significant debt that you owe to creditors. You could also have a serious illness or injury. The IRS might accept your offer if you have experienced a significant change in your financial situation. However, the IRS will be cautious about accepting this from you if you have submitted one in the past. This is because you might still be meeting the terms of your previous offer.

Extended Installment

One of the most common ways for taxpayers to pay their taxes owed is with an installment agreement. The installment agreement is a payment plan that you can establish with the Internal Revenue Service. The IRS will give you a deadline for each payment.

You will have to pay your taxes by the deadline given. You will have to pay the interest and penalties that have accrued on the loan with your installment agreement. This is only viable if you can pay the amount owed in three years.


Now you should be able to see the benefits of the IRS fresh start initiative and other IRS programs, as well as their risks. It is a good idea to speak with a professional about any issues that you might have regarding the IRS and more specifically, the IRS fresh start initiative.

Axiom Tax Resolution Group offers IRS debt relief and fresh start tax relief options. Let us help you get on the path to resolving your IRS tax debt issues. Contact us today to get started!