The IRS “Fresh Start Initiative” (2011) is often misunderstood. Again, is NOT a single program you apply for—it’s a set of policy changes that made existing IRS collection options more flexible.
1) Installment Agreements let taxpayers pay monthly over time. In many cases, they prevent enforced collection actions like levies or garnishments when set up correctly.
2) A lesser-known option is the Partial Payment Installment Agreement (PPIA). This allows payments that do NOT fully pay the tax debt before the IRS
collection statute expires—based on financial ability.
3) Another option is Currently Not Collectible (CNC) status. This does not erase debt—it temporarily pauses collection when a taxpayer cannot afford payments.
4) Offers in Compromise allow some taxpayers to settle for less than the full amount owed, but approval depends on “reasonable collection potential,” not just hardship.
The biggest mistake taxpayers make is paying for “tax relief programs” without understanding these IRS options first—many can be set up directly with the IRS when the facts qualify.