Austin Tax Blog


For over a couple of years now, IRS has continued to provide several taxpayers different tax relief programs. Finally, IRS has come up with a new program known as Fresh Start Program where many various options are compiled in the said program.

Though you may notice that some of the options included in the program are already existing, if you look at it closely, you will see that there minor changes when it comes it IRS’ methods of evaluating the taxpayers and the processing of payment agreements. It should not be shrugged off because these minor changes can help you solve your current tax liabilities.

IRS Tax Relief Programs

Fresh Start Program

But first of all, how does the Fresh Start Program work? It works in a way that the allowable amount that the taxpayer can borrow has been increased prior to IRS filing of Notice of Federal Tax Lien. As of the moment, the allowable amount that the taxpayer can owe may reach up to $10,000.

The general rules applies if such amounts that the taxpayer owe have not exceeded the standard amount imposed by IRS (which is $10,000), the there is no need for IRS to file a Notice of Federal Tax Lien against the tax payer. However, there are other instances where IRS may choose to file a notice even before the allowable limit has been reached.

The IRS only withdraws the notice once the taxpayer has fully paid his debts. But in order for IRS to do so, taxpayers must file a form 12277 that states the taxpayer’s application for withdrawal of the said lien.

Effects on Tax Liens

This program or remedy aids the taxpayers to steer clear from the negative effects of tax liens. In essence, tax lien usually imposed on all the debtor’s assets all throughout the tax lien. Lien may also be imposed on any newly acquired assets until such lean has been released.

Furthermore, liens have negative effects on your credits. Through this program, your notice of lien may be quieted. This means that you still have to pay for your debts but, through this program, the taxpayer might prevent the negative effects of lien previously discussed.

What exactly are the IRS tax relief programs

Request for Lien Withdrawal

The taxpayer may request from the IRS to withdraw his notice of lien provided that he has fully paid all his debts and that he is compliant with other necessary requirements that the IRS demands from the taxpayer. Another option that he may invoke for the IRS to withdraw would be to pay his debt by means of a Direct Debit, which is a form of an installment agreement.

Therefore, to be qualified of such program, you must ensure that all your tax returns are filed on time and be updated when it comes to all your estimated taxes.