The IRS Fresh Start Program
The Fresh Start Initiative is a real IRS program that makes it easier to resolve tax debt. Here's what it actually includes, who qualifies, and how to tell if it's right for you.
See If You Qualify
What Is the Fresh Start Program, Really?
If you've Googled "IRS tax relief," you've probably seen ads promising the Fresh Start Program will magically wipe out your tax debt. Let me be straight with you: "Fresh Start Program" is primarily a marketing term used by tax relief companies — not an official, active IRS program you can apply for today.
The actual IRS Fresh Start Initiative was a set of policy changes made back in 2011-2012 — over a decade ago. The IRS made it easier for taxpayers to set up payment plans, qualify for settlements, and avoid liens. These were meaningful changes, and the relief options they expanded are still available. But the IRS itself doesn't market a program called "Fresh Start" anymore.
So why does every tax relief company still use the name? Because it sounds good in a commercial. It implies there's some special, limited-time program you need to "enroll in" before it's gone. That's not how it works. The relief options are standard IRS programs available to anyone who qualifies — they've been around for years, and they aren't going anywhere.
The Fresh Start Initiative didn't create new programs — it made existing ones more accessible. There's no "Fresh Start application." The key is figuring out which specific IRS program fits your situation.
What the Fresh Start Program Actually Includes
Four key relief options that the Fresh Start changes made more accessible.
Easier Payment Plans
Before Fresh Start, you needed to owe less than $25,000 for a simplified installment agreement. Now that threshold is $50,000, and you get up to 72 months to pay. No detailed financial disclosure required.
Learn about payment plansOffer in Compromise
Fresh Start changed how the IRS calculates your "reasonable collection potential." For lump sum offers, they now only look at 1 year of future income instead of 4. That's a big deal — it means more people qualify to settle for less.
Learn about OICTax Lien Relief
The IRS raised the filing threshold for tax liens to $10,000. They also made it easier to get liens withdrawn after you've paid off your balance or set up a direct debit installment agreement. That matters because liens wreck your credit.
Learn about lien reliefPenalty Abatement
Fresh Start expanded penalty relief, including provisions for unemployed taxpayers and an easier path for first-time penalty abatement. Penalties and interest can add up to 25%+ of your original debt, so getting them removed makes a real difference.
Learn about penalty reliefWhat You Should Know First
There's a lot of information out there about the Fresh Start Program, and not all of it is accurate. Here's what actually matters before you move forward.
"Fresh Start Program" is a marketing term, not an IRS application.
There's no single form or enrollment for "Fresh Start." The name refers to a set of IRS policy changes from 2011-2012 that made existing programs more accessible. What you actually apply for are specific programs: an installment agreement, an Offer in Compromise, penalty abatement, or lien withdrawal.
Not everyone qualifies for every option.
The IRS evaluates your income, assets, expenses, and ability to pay. Each program has its own criteria, and the right fit depends on your specific situation. The first step is figuring out which options are realistic for you.
Settling for less is possible, but it's not guaranteed.
The IRS accepts roughly 30-40% of Offer in Compromise applications. An OIC might be the right path for you, or a different program might actually be the better move. It depends on the numbers.
My approach: I'll pull your IRS transcripts, look at your actual numbers, and give you an honest assessment. If an Offer in Compromise is realistic, great — we'll pursue it. If a payment plan or penalty abatement is the smarter move, I'll tell you that instead. No sales pitch, just the truth.
Who Qualifies for Fresh Start Relief?
The short answer: more people than you'd think. But the specific program that fits you depends on your situation. Here's a general breakdown:
- Owe $50,000 or less?
You likely qualify for a streamlined installment agreement without extensive financial paperwork.
- Can't pay the full amount?
An Offer in Compromise may let you settle for what you can realistically afford.
- First-time penalty situation?
If you've been compliant in the past, you may qualify for first-time penalty abatement — no questions asked.
One Important Requirement
To qualify for any Fresh Start relief, you need to be current on your tax filings. That means all required returns must be filed. If you have unfiled returns, don't worry — we handle that too. It just needs to happen first.
Not sure where you stand?
Get a Free AssessmentHow We Help You Use the Fresh Start Program
Free Consultation
We talk about your situation. You tell me what's going on, I ask some questions, and I give you an honest answer about your options.
IRS Investigation
I pull your IRS transcripts and analyze your complete tax history. This tells us exactly what you owe and what programs you actually qualify for.
Strategy & Filing
I build a strategy based on your real numbers, prepare all the paperwork, and submit everything to the IRS. You stay informed at every step.
Resolution
Your case gets resolved. Whether it's a settlement, a payment plan, or penalty removal — you move forward with the IRS behind you.
Watch Out for Fresh Start Scams
The "IRS Fresh Start Program" is one of the most exploited phrases in the tax industry. Be cautious of any company that:
- Guarantees a specific settlement amount before looking at your finances
- Claims you'll "qualify for the Fresh Start Program" like it's a single application
- Charges thousands upfront before doing any real analysis
- Uses high-pressure tactics or creates false urgency
At New Leaf Tax, your first consultation is free, and I'll tell you exactly where you stand before you spend a dime. If I can't help you, I'll tell you that too.
Fresh Start Program FAQs
Is the Fresh Start Program still available in 2026?
Yes. The core provisions — streamlined installment agreements, expanded OIC criteria, lien relief, and penalty abatement — are all still active. The IRS has actually continued to expand online access to these programs over the past few years.
How much does it cost to apply?
It depends on which program fits your situation. Installment agreements have a setup fee of $31-$225 depending on the type. Offers in Compromise have a $205 application fee plus 20% of the offer amount upfront. Both fees can be waived for low-income taxpayers. My consultation is always free.
How long does the process take?
Installment agreements can be set up in days to weeks. Offers in Compromise typically take 6-12 months for the IRS to review. Penalty abatement requests usually get a response within a few weeks. I'll give you a realistic timeline based on your specific situation.
Will I still owe interest while my case is pending?
Generally, yes — interest continues to accrue while the IRS reviews your application. However, the IRS won't take collection actions (like levies or garnishments) while an OIC is under review. That breathing room alone can be a huge relief.
Can I apply on my own, or do I need a professional?
You can apply on your own — the IRS doesn't require representation. But the paperwork is detailed, the IRS uses specific formulas to evaluate your case, and mistakes can mean rejection. Having an Enrolled Agent who knows how the IRS thinks gives you a significantly better shot at the best possible outcome.
Let's Figure Out Your Best Option
Every tax situation is different. I'll look at your actual numbers and tell you exactly what makes sense — no sales pitch, no pressure.