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IRS Fresh Start Program and Its Connection to OIC

Learn about the eligibility criteria for the IRS Fresh Start Program and its connection to OIC. Get a fresh perspective on resolving tax debt issues.

Before delving into the dynamics of the IRS Fresh Start Program and its intricate relationship with the Offer in Compromise (OIC) program, it is essential to grasp the fundamental concepts and how they interconnect. These two IRS initiatives play pivotal roles in helping individuals and businesses manage their tax debt challenges, but understanding their functions and how they relate to each other is the first step towards making informed decisions about resolving your tax obligations

It's essential to understand that while these programs share some common eligibility criteria, they serve different purposes and have distinct features. The Fresh Start Program focuses on helping individuals and businesses set up manageable payment plans, while the Offer in Compromise offers a potential way to settle tax debt for less than the full amount owed.

When considering these options, it's highly recommended to consult with a tax professional or attorney who can assess your specific financial situation, help you navigate the application process, and guide you toward the most appropriate solution for your tax debt challenges.

Frequently Asked Questions

Can I apply for both the Fresh Start Program and Offer in Compromise at the same time?

The Fresh Start initiative is not a single application but a set of IRS policies that made relief options, including the Offer in Compromise, easier to access. An Offer in Compromise is one of the tools available under that broader framework, so applying for an OIC is effectively pursuing relief within Fresh Start. A tax attorney can help you decide which specific program best fits your finances.

Are there any fees associated with the Fresh Start Program or Offer in Compromise?

An Offer in Compromise generally requires an application fee and an initial payment when you submit Form 656, though low-income applicants who meet the IRS guidelines may have the fee waived. Setting up an installment agreement can also carry a setup fee that varies by payment method. Check the current amounts on IRS.gov, since these figures are updated periodically.

How long does it take to get approved for the Fresh Start Program or Offer in Compromise?

Timelines vary with the option you pursue and how complete your submission is. An installment agreement can sometimes be set up quickly, while the IRS may take many months to review an Offer in Compromise because it examines your income, expenses, and assets in detail. Submitting accurate, complete paperwork helps avoid delays.

Can I negotiate the terms of my Fresh Start Program or Offer in Compromise agreement with the IRS?

There is room to work with the IRS on the terms that fit your situation. With an installment agreement, you can propose a monthly amount based on what you can afford, and with an Offer in Compromise you calculate the offer using the IRS formula for reasonable collection potential. If your circumstances change, you can often request an adjustment, and a tax professional can help you prepare a realistic proposal.

Request a free consultation with our experts today and take the first step towards achieving your goals.

This content was written and reviewed by the licensed tax attorneys at Victory Tax Lawyers, LLP. Our attorneys specialize in IRS tax relief and are licensed members of the California State Bar with a nationwide practice.

Last Reviewed: 2026  ·  Meet Our Attorneys →

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