IRS Fresh Start: Who Can Wipe Tax Debt Clean?

The IRS Fresh Start program offers a path out of serious tax debt. It can stop penalties, reduce payments, and even remove liens. But strict rules decide who qualifies. The program is for individuals and businesses. Your main debt must be from payroll taxes or income taxes. You must also meet specific limits for what you owe. Generally, you qualify if your total tax debt is $50,000 or less. This includes any penalties and interest. The IRS will also check your recent tax filings and payment history. You must be current. This means you have filed all required tax returns for the past two years. You also need to have made any required estimated tax payments in the current year. If you meet these rules, Fresh Start provides key options. The IRS may approve an Installment Agreement with lower monthly payments. In some cases, they can declare your debt "Currently Not Collectible" or accept an "Offer in Compromise" to settle for less than you owe. To apply, contact the IRS directly or work with a qualified tax professional.