The recent expansion of the IRS Fresh Start Program to help struggling taxpayers includes making Installment Agreements available to more people.
Under the new Fresh Start provisions, part of a broader effort started at the IRS in 2008, the IRS is now doubling the dollar threshold for taxpayers eligible for Installment Agreements to help more people qualify for the program. These provisions also mean that more taxpayers will have the ability to use streamlined installment agreements to catch up on back taxes.
Currently, individual taxpayers can get a streamlined Installment Agreement on balances up to $50,000, double the previous amount of $25,000. The period to pay the full amount owed is now 72 months, up from the previous 60 months. Of course, if the person can pay in less than 72 months, they will pay less in interest and penalties. The agreement must result in full payment before the statutory period of collection expires.
For more information about streamlined installment agreements and the IRS Fresh Start Program visit IRS.gov keyword “Fresh Start.”
