IRS Extends “Fresh Start” Program to Help Struggling Taxpayers But Read the Fine Print First

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Tax Resolution Services, Co., helps taxpayers take full advantage of this initiative since those who want to apply for it need to be cautious.

Tax Resolution Services

Tax Resolution Services, Co.®

I can’t tell you how many times I’ve seen it happen – people apply for these kinds of programs and then wind up not being able to qualify, and then they’re stuck having to pay their whole tab.

In an effort to woo financially strapped taxpayers to take steps to pay their current and back taxes in an economy that is barely showing signs of life, the Internal Revenue Service recently announced that it has expanded its “Fresh Start” initiative. Fresh Start offers taxpayers some more flexibility to help pay the tax debt they incurred through failure to pay by providing options for penalty relief, installment agreements, and offers in compromise, which allow consumers to settle their overall tax bill for less than the total amount owed. While these options certainly sound beneficial, any individuals or businesses considering applying for the Fresh Start program should do so with a buyer beware behavior.

“The IRS dresses up these proposals, puts a lot of makeup on them, and sometimes you find out they weren’t what they were all cracked up to be,” said Michael Rozbruch, founder and CEO of Tax Resolution Services, the nation’s foremost tax debt resolution company. “Take for example the Failure to Pay Penalty relief. Reading the fine print one finds that it is only for a relatively short duration period – April 17 through October 15, 2012. Furthermore, in order to qualify for this six-month waiver, taxpayers have to pay their bill in full, including interest and any other penalties, by October 15, 2012. Another requirement to meet is that you must have been out of work (if you were a W-2 wage earner) for 30 consecutive days in 2011 or 2012 up to April 17, 2012. If you are an independent contractor, you had to experience at least a 25 percent reduction in business income in 2011 due to the economy. It doesn’t stop there. To qualify for this Fresh Start penalty relief program, adjusted gross income cannot exceed $200,000 if married filing jointly, or $100,000 if your filing status is single, married filing separately, head of household, or qualifying widow. Oh, and one last thing, your tax balance can’t exceed $50,000. Now that’s what I call a ‘pig with lipstick’!”

Rozbruch added, “I can’t tell you how many times I’ve seen it happen – people apply for these kinds of programs and then wind up not being able to qualify, and then they’re stuck having to pay their whole tab, in full now, when they could have done a few things to make sure that didn’t happen.”

That’s not to say, of course, that the IRS is using this Fresh Start initiative to lure unsuspecting taxpayers to apply for tax debt relief only to ensnare them to pay their full tab; however, there are many other ways a Certified Tax Resolution Specialist (who is also an attorney, CPA, or enrolled agent) can represent you to obtain the best settlement, for the lowest amount allowed by law while protecting your rights as a U.S. taxpayer.

Rozbruch welcomes those who owe back taxes, have unfiled returns or are under audit to contact Tax Resolution Services via phone at 866-477-7762 or online at for a free no obligation consultation.

Tax Resolution Services, Co., is dedicated to providing affordable solutions to businesses and individuals alike who find themselves in trouble with the IRS. Their tax attorneys, CPAs, and tax relief professionals have successfully resolved thousands of cases since 1998 and are committed to making sure our clients' experiences exceed their expectations. For more information or to receive a FREE tax relief consultation, visit or call 888-851-5894.

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Debbie Edwards

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