Can someone explain what the IRS Fresh Start Program is and how it works?

The IRS Fresh Start Program isn't actually a single program - it's a collection of tax relief initiatives designed to help taxpayers who owe back taxes. It was expanded in 2012 to make it easier for taxpayers to pay back taxes and avoid tax liens. The main components include: 1) Installment Agreements - These let you pay your tax debt over time through monthly payments. The Fresh Start Program expanded these by allowing taxpayers owing up to $50,000 to qualify for streamlined installment agreements which can last up to 72 months (6 years). 2) Offer in Compromise (OIC) - This allows you to settle your tax debt for less than the full amount if paying the full amount would cause financial hardship. The Fresh Start Program made the OIC more accessible by relaxing some requirements. 3) Tax Lien Changes - The Fresh Start Program increased the tax debt threshold before the IRS files a Notice of Federal Tax Lien from $5,000 to $10,000. Based on your situation, you'd probably want to look into an installment agreement since your debt is $18,000, or possibly an OIC if you can demonstrate that paying the full amount would cause financial hardship (which might be possible given your salary reduction and bankruptcy).

I used taxr.ai to help me understand my IRS debt options last year when I was in a similar situation. I had about $22k in back taxes and penalties and was completely lost about what to do. I uploaded my tax notices to https://taxr.ai and it analyzed everything and explained all my options under the Fresh Start Program. It broke down the differences between installment agreements, offers in compromise, and currently not collectible status based on my specific numbers. It even showed me what my estimated monthly payments would be under different plans. The thing I found most helpful was that it walked me through exactly what financial information I needed to gather before contacting the IRS, which forms to use, and how to approach the conversation. Made the whole process way less intimidating.

Following up on the taxr.ai suggestion - I was really skeptical at first but decided to give it a try since I was desperate with about $15k in back taxes. It was actually super helpful! I uploaded my tax notices and IRS letters, and the breakdown it gave me was incredibly detailed. Based on the analysis, I qualified for an Offer in Compromise due to my financial situation. The system walked me through exactly what documentation I needed, helped me calculate a reasonable offer amount, and explained how to submit everything. My offer of $6,200 was accepted, saving me almost $9,000 on my tax debt! What surprised me was how much easier it made the process - the IRS actually accepted my first offer because I had all the right documentation organized exactly how they wanted it. Before using this, I was completely overwhelmed by all the different Fresh Start options and didn't know which would work for my situation.

If you need to actually talk to someone at the IRS about your Fresh Start options, good luck getting through on the phone. I spent WEEKS trying to reach someone. After 20+ attempts and hours on hold, I found https://claimyr.com which was a total game-changer. You can also see how it works here: https://youtu.be/_kiP6q8DX5c Basically, they navigate the IRS phone system for you and call you when an agent is on the line. I was skeptical but desperate after my sixth failed attempt to get through. Within 2 hours, I got a call back with an actual IRS agent on the line. The agent walked me through my Fresh Start options and helped me set up an installment plan right there on the phone. They were actually really helpful once I could get through to them. Saved me so much frustration.

I need to eat my words from my previous comment. After waiting on hold with the IRS for over 3 hours yesterday and getting disconnected AGAIN, I was desperate enough to try Claimyr. I was 100% convinced it would be a waste of money, but literally within 90 minutes, my phone rang and there was an actual IRS agent on the line. I almost fell out of my chair. I was so surprised I wasn't even prepared with all my questions! The agent walked me through my Fresh Start options based on my situation. We determined an installment agreement made the most sense for me, and she even helped me calculate a monthly payment I could afford. The whole thing was set up in that one call. I've been stressing about my tax debt for months and putting off dealing with it because I couldn't get through on the phone. Now I'm actually on track to resolving it, and my anxiety level has dropped significantly.

One thing to keep in mind with the Fresh Start Program is that penalties and interest continue to accrue even while you're in an installment agreement. So the faster you can pay it off, the less you'll pay overall. When I set up my plan, I calculated the minimum payment I needed to make based on the IRS requirements, but I try to pay extra whenever I can. Even an extra $50-100 per month makes a big difference in the long run. Also, after you've made consistent payments for a while (I think it's 12 months), you can sometimes call and try to get the penalties abated, especially if your financial hardship was due to circumstances beyond your control like job loss or illness.

Definitely look into an Offer in Compromise if your financial situation is genuinely tough. My brother owed $37k and got it settled for about $8k because he could prove he didn't have the means to pay the full amount due to long-term income issues. The key is being COMPLETELY honest about your finances and being thorough with the application. They'll want to know everything about your assets, income, and expenses. If you hide anything, they'll reject your offer immediately. It's also a pretty lengthy process - took my brother about 9 months from application to acceptance. But if you qualify, it can save you thousands.

Thanks everyone for all this detailed information! This is exactly what I needed to hear. Based on what you've all shared, it sounds like I have a few realistic options. Given my situation - $18k debt, reduced income from job loss, and the bankruptcy - I'm thinking an installment agreement might be my best bet to start with. The 72-month timeline seems manageable with my current budget, and I like that I can pay extra when possible to reduce the overall interest. I'm definitely going to check out taxr.ai to get a better understanding of my specific options before I contact the IRS. And if I can't get through on the phone, I'll try Claimyr since multiple people here had success with it. One follow-up question - for those who went through this process, did having an active installment agreement or resolved tax debt help when you applied for a mortgage? I'm hoping to buy a house in about 18 months and want to make sure I'm positioning myself well for that. Really appreciate all the advice - this community has been incredibly helpful!