Misconceptions About the IRS Fresh Start Program in 2025

Owing unpaid taxes to the IRS can be incredibly stressful, and there are many tax relief firms that advertise services to help taxpayers with their tax problems. Unfortunately, however, many of these tax resolution companies use deceptive advertising tactics. One of the most common marketing terms is “fresh start” or “tax forgiveness” when referring to potential tax solutions. The truth is that there’s no current IRS Fresh Start or tax forgiveness program. Yet that doesn’t mean finding a tax resolution to your particular tax problem is impossible. You just have to ensure that you choose the right person or firm to help you. This blog post will explain how and why many tax relief marketing efforts are misleading, discuss real tax resolution options, and provide tips you can use to find the right tax relief company, such as McLaud Law P.C.

Key Takeaways

• Tax relief firms misuse the phrase “Fresh Start,” leading many taxpayers to believe it’s a type of limited-time tax relief that you can only get with a special application.
• Officially, the term “Fresh Start” refers to either a 2011 IRS initiative to help struggling taxpayers with unresolved tax debts or to an offer in compromise.
• To find the best tax resolution services possible, focus on firms that use credentialed tax pros (such as attorneys and enrolled agents) and don’t make promises until after completing a detailed financial review of your situation.

Is the IRS “Fresh Start” Program Real?

The Fresh Start program is often advertised (or strongly implied) as a current program that distressed taxpayers can apply to for help paying off their tax balances, but that is not the case. There are two things to understand about “fresh start.” First, the “Fresh Start Program” is what the IRS used to call its offer in compromise (OIC) tax payment option. The OIC unit exists today and allows eligible taxpayers to settle their unpaid tax debts for less than the full amount. But it’s no longer called a “fresh start” by the IRS. Second, the IRS announced a “Fresh Start” initiative back in 2011. These were policy changes the IRS implemented to modify its tax collection efforts to help struggling taxpayers. Some of these changes included:

• Easier tax lien withdrawal procedures.
• Lower number of lien filings by the IRS.
• More flexible tax payment options, such as the streamlined installment agreement, which as of 2025, this is being replaced by the Simple Payment Plan.
• Lower eligibility requirements for an OIC.

Using the term “fresh start” when marketing tax relief services is tricky because it refers to something that really existed. However, a lot of firms use this phrase in misleading ways, which leads to a lot of misconceptions.

Common Misconceptions About Fresh Start Tax Programs

Many misconceptions exist about tax resolution options, and unfortunately, some of the biggest ones are driven by advertising in this space. Here are some of the most common fresh start myths.

Misconception #1: Fresh Start Is Something You Can Apply For

Yes, it’s possible to get a financial fresh start with your taxes in the colloquial sense of the phrase. But there’s no current fresh start program to apply for with the IRS. There are other ways to settle unpaid tax balances; they all have their own applications, but they aren’t called “fresh start.”

Misconception #2: Anyone Can Qualify for the Fresh Start Program

Again, this isn’t a program, so there’s nothing to qualify for. While there are tax relief options available, they have specific eligibility requirements that not all taxpayers can meet, such as restrictions on income levels, assets, or tax compliance history.

Misconception #3: Fresh Start Is Only Available For a Limited Time

When tax relief firms imply that you only have a limited amount of time to apply for a fresh start, they are being disingenuous. First, as explained above, it’s not a real program, and second, the IRS doesn’t put these types of limitations on its tax relief options. If the IRS has a tax relief option available, then there’s typically not a limited amount of time to apply for it. That said, it’s always possible for IRS programs and initiatives to end or change, and in some cases, the IRS offers certain types of relief for limited time periods. Finally, it’s also important to be aware that there are cases where you need to act quickly – for instance, if you’ve received a Final Intent to Levy notice, you only have 30 days to respond or appeal before the IRS garnishes your wages or seizes your assets.

Misconception #4: Fresh Start Is a Type of Tax Forgiveness

The term “tax forgiveness” is similar to “fresh start” because it’s common marketing jargon used by tax relief companies and doesn’t refer to a currently existing IRS tax relief program. Advertisements often make it sound like anyone can get tax forgiveness. However, in reality, very few people qualify for settlements. The IRS will generally only settle your tax bill if you meet very specific income and asset requirements. An experienced tax professional can often give you a sense of whether or not you qualify for a settlement, just by collecting a few basics about your tax situation. But if someone says you’ll qualify for forgiveness before they know any details about your finances, that’s typically a red flag, and you should look for someone else.

Real Tax Relief Options To Consider

While fresh start may not exist as a current tax relief option, there are other forms of tax relief available. These include:

• Offer in Compromise – settle taxes for less than owed.
• nstallment Agreement or Payment PlanI – make monthly payments on tax debt.
• Penalty Abatement – get taxes waived for reasonable cause or first-time offenses.
• Partial Payment Installment Agreement – make monthly payments until the collection expiration date, at which time the remaining tax debt gets settled (waived).
• Currently Not Collectible (CNC) Status – prove you can’t afford to pay, and then, the IRS stops collections against you.
• Innocent Spouse Relief – get relief from your liability for tax debt related to your spouse, under strict conditions.

In many cases, it makes sense to take advantage of multiple options. For example, you may need penalty relief and an installment agreement. Or you may need to apply for innocent spouse relief and then an offer in compromise on your personal tax liability. A tax attorney can help you select the best option(s).

How To Find a Legitimate Tax Resolution Firm

The good news is that there are many tax resolution companies out there that aren’t scammers and that offer legitimate tax relief services. But how do you find them? The following tips can help you find the right tax relief provider and avoid the less-than-reputable ones.

Tip #1: Avoid Businesses That Use “Fresh Start” or “Tax Forgiveness” as a Sales Pitch

Discussing these phrases is one thing. But if a sales rep is trying to convince you to sign up with their firm because they can help you “qualify” for the IRS Fresh Start program or get the IRS to “forgive” your tax debt, that’s usually a sign to stay away.

Tip #2: Be Skeptical of Promises About Settling Tax Debts for “Pennies on the Dollar.”

It’s possible to settle a tax debt for dramatically less than the actual amount, but it’s somewhat rare to do so. Only taxpayers in extreme financial distress can qualify for these drastic reductions, and even then, they might only settle the tax debt for “dimes on the dollar.” In other words, resolving a tax balance for less than what you owe is possible, but you have to qualify, and any tax debt reduction will usually be far more modest than what’s being advertised. That said, the tax pros at our firm have achieved these successes for their clients, but they are difficult to achieve and most people don’t qualify.

Tip #3: Beware of High-Pressure Sales Tactics

Avoid companies that say you must act now, tell you that only they can get you special tax relief, or that you’re wasting your time shopping around. Figuring out how to fix a tax problem is an important decision that takes time to make, and reputable tax relief agencies and law firms understand that.

Tip #4: Question Promises Made Before a Financial Review

A popular strategy that unethical tax resolution companies use is to tell a prospective customer that they can get a certain amount or type of tax relief before reviewing that customer’s financial situation. Only after that customer signs a contract does the financial review take place. After this financial analysis, the customer is told they don’t qualify. But the customer doesn’t learn this until after they’ve made one or more non-refundable payments to the tax relief company. Another form of tax relief might still be available, but it won’t be as good as what was originally promised. Or worse, they file a request for the pie-in-the-sky resolution despite not being qualified, and throw up their hands when the inevitable rejection comes. If someone’s making promises before they know anything about your situation, that’s another sign that you may want to look for a different firm.

Tip #5: Look for Companies or Firms With Credentialed Tax Professionals

The tax relief industry is largely unregulated, which makes it easier for anyone to offer their services. One way to find the right help is to look for tax pros with industry-recognized qualifications and credentials, such as enrolled agent (EA), or tax attorney. All of these tax professionals have to pass special exams to hold themselves out as a lawyer or EA. They’re also subject to continuing education requirements and ethical standards. It’s common for CPAs to also offer to help with tax resolution. While some CPAs do provide quality representation in this manner, it has been our experience that most CPAs have knowledge and experience that is focused on bookkeeping and tax return preparation, and have little proficiency dealing with collections and appeals, so be careful having a CPA handle a resolution matter for you. When researching tax relief firms, look for ones with “About Us” or “Our Team” pages on their websites that list specific tax professionals and their credentials. The more professional history details that are provided, the better. You can also verify if someone is a CPA, EA, or lawyer by going to CPAverify, contacting the IRS, or looking them up using an attorney search directory on their state bar’s website, respectively.

Tip #6: Focus on Local Tax Relief Companies

Companies with nationwide marketing efforts are more likely to be less thorough when working on your tax case because they’re volume-driven businesses. Firms with a more limited geographical focus tend to emphasize quality over quantity. This is because they’re more well-known in their community and have reputations they want to protect. They also rely on word-of-mouth to find new clients. Therefore, doing a good job for their clients is very important to them. A local pro can also be essential if you’re dealing with state tax problems.

Get Real Tax Relief Help From McLaud Law P.C.

The IRS Fresh Start program may not currently exist, but the tax professionals from McLaud Law P.C. can still help you find a way to deal with the IRS and your unpaid taxes. We’re more than happy to examine your situation, explain what options may be available, and provide a recommendation on which solution is best for you. Get started by contacting us or calling us at 585-397-7785 for a free consultation today. This communication is Attorney Advertising. It is presented for informational purposes only and does not constitute legal advice. Every legal situation is different, and prior results do not guarantee a similar outcome. This communication does not create an attorney-client relationship between McLaud Law P.C. and the recipient.