In 2011, the IRS announced the expansion of the “Fresh Start” program as an attempt to help taxpayers with financial difficulties. But the problem we have is that, like all other IRS ads, this one also claims that they are always on your side. But they are not and the fact is that they do not have to be.

Let’s find out which of the top three IRS Fresh Start programs is really the most helpful in solving your tax problems.

1. IRS New Start for Tax Links

The first is the IRS Fresh Start Federal Tax Link program. The IRS says the new standard for filing the Notice of Federal Tax Lien is in the taxpayer’s favor by increasing the minimum liability to file a tax lien from $5,000 to $10,000; this sounds good. But it is quite useless. And what is there for the IRS to insure something from people when they have nothing to pay? It will only serve to lower your credit score by 100 points or more and make it harder to get approved for new credit to pay the IRS. The new change is not retroactive and the IRS cannot automatically remove a previously filed link. Classification: two thumbs down; a highly ineffective program.

2. Installment Payment Agreement and the Fresh Start Program

The next program is the IRS Installment Plans. If you owe $50,000 or less in taxes, interest, and penalties combined, you can participate in an installment plan by providing minimal financial information to the IRS (if you owe less than $25,000, you don’t have to send anything). The term to pay under the simplified installment agreement has been increased to 72 months. Classification: Good.

If you owe more than $50,000, you must complete Form 433-F, Collection Information Statement. You have to do a lot of negotiating with the IRS about a reasonable monthly plan, as payment amounts are left to the discretion of IRS representatives.

3. Offer of fresh start in compromise

This definitely stands out as the best IRS Fresh Start program to settle back taxes for less than you owe. The IRS has now added more flexibility when calculating a taxpayer’s ability to pay when requesting relief under an Offer in Compromise. A significant change is in the calculation of the taxpayer’s reasonable collection potential. The IRS looks at only two years of future income for offers paid within 24 months, which is a reduction of five years. The changes allow more people to qualify for OIC programs, giving them a new opportunity to settle their tax debts with the IRS. Classification: An excellent program. Go and make the most of this opportunity.

Dealing with the IRS

The IRS Fresh Start Program has opened the door to new possibilities for solving back tax problems, but it must be used the right way. You need to understand that knowing all the details related to the new installment agreement policy or having an offer in compromise from the IRS is still a challenge for many people. There’s no guarantee that the new relaxed policies will last forever, so there’s no better time than now to start negotiating with the IRS.