Episode description

You’ve heard the ads: “Settle your IRS debt for pennies on the dollar with the Fresh Start Program!” In this episode, [HOST NAME] of [FIRM NAME] explains what the IRS Fresh Start Initiative really is: a set of 2011–2012 policy changes that made payment plans, lien relief, and Offers in Compromise easier to reach. Then come the spoiler alerts. It’s not a one-time forgiveness of everything you owe, and it’s not a “throw out a number and see if the IRS takes it” deal. If you owe the IRS, this is the episode to hear before you call that number on the billboard.

In this episode (estimated timestamps; update after editing)

• 00:00 Cold open: the “pennies on the dollar” ad
• 01:00 What Fresh Start actually is: three waves of IRS changes in 2011 and 2012
• 02:45 Spoiler alert #1: it’s NOT a one-time forgiveness of everything you owe
• 04:15 Spoiler alert #2: it’s NOT a “throw out a number” plan, and how the Offer in Compromise formula works
• 06:15 Rapid-fire spoiler alerts: not a form, not automatic, not a way around filing, not new
• 07:30 What Fresh Start CAN do: payment plans, liens, offers, and penalty relief
• 09:45 Wrap-up and the biggest spoiler alert of all

Key takeaways

• Fresh Start is a package of IRS rule changes, not a program you apply to.
• Most people who use Fresh Start tools pay their tax in full over time. Penalties and interest keep running until it’s paid.
• An Offer in Compromise is set by a formula: your asset equity plus 12 or 24 months of future remaining income.
• Offers carry a $205 application fee, an upfront payment, and five years of required compliance. Low-income applicants may be exempt from the fee and the payment.
• If you owe $50,000 or less and your returns are filed, you can usually set up a payment plan online without a full financial statement.
• Unfiled returns block nearly every option, so getting current comes first.
• Be wary of anyone who promises to erase your tax debt before reviewing your income, expenses, and assets.

Resources mentioned

• IRS: Payment plans (installment agreements): https://www.irs.gov/payments/payment-plans-installment-agreements
• IRS: Offer in Compromise: https://www.irs.gov/payments/offer-in-compromise
• IRS Form 656 Booklet (Offer in Compromise): https://www.irs.gov/pub/irs-pdf/f656b.pdf
• IRS IR-2012-31, Expanded Fresh Start (Mar. 7, 2012): https://www.irs.gov/pub/irs-news/ir-12-031.pdf
• IRS IR-2012-53, Offer in Compromise changes (May 21, 2012): https://www.irs.gov/pub/irs-news/ir-12-053.pdf
• Companion blog post: [BLOG LINK]

Get help

Owe the IRS and not sure where you stand? Contact Bryson Law Firm, LLC (www.brysonlawfirm.com) for a review of your full financial picture.

Disclaimer

This episode is for general information only and is not legal or tax advice. Every situation is different, and IRS rules and figures change. Consult a qualified professional about your specific situation.