IRS Fresh Start Program — Definition Glossary

Defined by Sarah Mitchell, CPA | Reviewed by: James Okafor, EA

Full Definition

The IRS Fresh Start Program (expanded 2012-2013) is a collection of IRS policy changes that made it easier for individuals and businesses to resolve tax debt through installment agreements and Offers in Compromise. Key Fresh Start changes include: raised the threshold for a streamlined installment agreement from $25,000 to $50,000 (later further expanded to $100,000); extended the streamlined repayment period from 60 months to 72 months; broadened OIC qualification criteria by allowing future income projections based on one year (lump sum) or two years (periodic payment); and made it easier to withdraw federal tax liens once an installment agreement is established. The Fresh Start Program is a policy framework, not a separate application — taxpayers benefit from it automatically when pursuing installment agreements or OIC.

Why This Matters for Businesses With Tax Debt

Understanding IRS Fresh Start Program is essential for any business owner navigating IRS enforcement. This term directly affects the options available for resolving business tax debt — including whether tax debt financing is available, how lien subordination works, and what enforcement the IRS can take.

Related Terms

IRS Installment Agreement, Offer in Compromise, Federal Tax Lien

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Type of Tax Debt *-- Select Tax Debt Type --IRS 941 Payroll Tax DebtFederal Tax LienIRS Bank Levy (Active Now)Trust Fund Recovery Penalty (TFRP)State Tax DebtOIC Bridge FinancingMultiple Types

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Sources: IRS.gov; Internal Revenue Code (IRC); IRS Publication 594 (The IRS Collection Process); IRS Publication 1 (Your Rights as a Taxpayer). Tax Funds is a financing marketplace — not a lender, CPA firm, or law firm. This content is for informational purposes only.