When Plan A Hits a Roadblock: What to Do If the IRS Fresh Start Program Won’t Work

Hey there, Californians! Sometimes, despite our best efforts and intentions, things don’t always go according to plan. If you’ve been exploring options to resolve your tax debt and found that the IRS Fresh Start Program isn’t the right fit for you, don’t worry – you’re not out of options just yet. Let’s talk about what you can do next.

1. Understand Why It Didn’t Work
   Before we explore alternative solutions, it’s essential to understand why the IRS Fresh Start Program may not have been suitable for your situation. Common reasons include:
   1. Your tax debt exceeds the program’s limits.
   2. Your financial situation doesn’t meet the eligibility criteria.
   3. You have outstanding tax returns or unfiled taxes.
   4. You’re facing other financial challenges that need to be addressed first.
2. Explore Other Payment Options
   If the Fresh Start Program isn’t a viable option, don’t despair. There are still alternative payment arrangements available to you. These may include:
   1. Installment Agreements: You can work with the IRS to set up a payment plan that fits your budget. Depending on your circumstances, you may qualify for a streamlined installment agreement or a partial payment installment agreement.
   2. Offer in Compromise: This program allows you to settle your tax debt for less than the full amount owed if you meet certain criteria. It’s a more significant step than an installment agreement and typically requires demonstrating financial hardship or doubt as to collectability.
   3. Currently Not Collectible Status: If you’re experiencing financial hardship and can’t afford to pay your taxes, you may qualify for Currently Not Collectible (CNC) status. This temporarily suspends collection efforts while you get back on your feet.
3. Address Unfiled Taxes or Other Issues
   Sometimes, unresolved tax issues can prevent you from taking advantage of relief programs like the Fresh Start Program. If you have unfiled tax returns or other outstanding tax issues, it’s crucial to address them promptly. Working with a tax professional can help you get back on track and explore your options for resolving these issues.
4. Seek Professional Guidance
   Dealing with tax debt can be complex, especially when exploring alternative payment options. Seeking guidance from a tax professional, such as an Enrolled Agent, can provide clarity and peace of mind. They can review your financial situation, assess your eligibility for different programs, and help you navigate the process with confidence.
   
   

Remember, just because one door closes doesn’t mean another won’t open. If the IRS Fresh Start Program isn’t the right solution for you, there are still alternative options available. By understanding your options and seeking professional guidance, you can take control of your tax debt and work towards a brighter financial future.

At My Tax Problems Solved, we specialize in tax representation and resolution, helping individuals and businesses in San Diego and across California find solutions to their tax problems. If you’re facing challenges with the IRS Fresh Start Program or need assistance exploring alternative options, don’t hesitate to reach out. We’re here to help!

Until next time,

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Disclaimer:

This blog post is intended for informational purposes only and should not be considered professional tax or financial advice. For personalized guidance regarding your tax situation, it is recommended to consult with a qualified tax professional.