Mixon Tax Law explains why the IRS Fresh Start Program isn’t one application. The guide breaks it into four relief tracks, each with its own rules, and flags unfiled returns as the most common obstacle.
-- HOUSTON — Houston taxpayers who look up the IRS Fresh Start Program after a balance-due notice arrives often expect a single application that wipes out what they owe. A new guide from Mixon Tax Law, PLLC, a Houston tax firm led by attorney and CPA Phillip Mixon, says the program has never worked that way.
The IRS's own 2012 announcement of the Fresh Start expansion described just two changes: penalty relief for some unemployed taxpayers and a higher dollar limit for installment agreements. Today the name covers several separate IRS collection policies, according to the guide, and each one has its own forms, eligibility rules and timeline.
The guide sorts Fresh Start relief into four tracks:
Streamlined installment agreements, for combined balances of $50,000 or less, with up to 72 months to pay.
Offers in Compromise, which settle a tax debt for less than the full balance.
First-time penalty abatement, which can remove failure-to-file and failure-to-pay penalties for taxpayers with a clean three-year history.
Federal tax lien withdrawal, for taxpayers who owe $25,000 or less and make three consecutive direct debit payments.
Qualifying for one track says nothing about qualifying for another. The guide describes a mistake that comes up often: a taxpayer treats "Fresh Start eligible" as one status, prepares an Offer in Compromise using installment-agreement math and gets rejected, losing months in the process.
Most individuals start with the streamlined plan. At that balance level, the IRS generally does not ask for a full financial statement on Form 433-A or 433-F. The firm covers payment plan types in a separate guide at https://mixontaxlaw.com/irs-payment-plan-options-houston/
An Offer in Compromise is harder to get. The IRS compares the offer with its own estimate of what it could realistically collect, called reasonable collection potential. That figure counts income and equity in assets, then subtracts living expenses at IRS allowable amounts rather than what a household actually spends. Applicants must have filed every required return, cannot be in an open bankruptcy case and must include an initial payment, which is 20% of the offer amount on a lump-sum offer. Reviews often take several months and sometimes more than a year.
Unfiled returns are the obstacle the guide flags most. The IRS generally will not approve an installment agreement or an Offer in Compromise while a required return is missing, so taxpayers with filing gaps need to close them before asking for relief.
The guide also addresses a pattern common in Houston, where many taxpayers run small businesses or work for themselves in energy, construction and professional services. A slow quarter can leave them behind on personal income tax and payroll taxes at the same time. The IRS pursues payroll trust fund debt more aggressively, so owners carrying both kinds of debt often need two coordinated strategies rather than one Fresh Start filing.
Waiting has a cost. Interest on unpaid federal tax compounds daily, and the failure-to-pay penalty generally adds 0.5% of the unpaid tax per month, up to 25%. Collection can keep moving in the meantime through a lien filing, wage garnishment or bank levy.
The full guide, including a pre-application checklist and answers to common questions, is available at https://mixontaxlaw.com/irs-fresh-start-program/
Taxpayers already facing a lien, levy or garnishment can review the firm's IRS collection representation at https://mixontaxlaw.com/irs-collection-lawyer/
Mixon Tax Law recommends that taxpayers pull their IRS account transcripts and confirm every return is filed before choosing a Fresh Start track.
About Mixon Tax Law, PLLC: Mixon Tax Law is a Houston tax law firm founded in 2024 by Phillip Mixon, a dual-qualified attorney and Certified Public Accountant who previously worked in KPMG's M&A Tax Department. The firm represents individuals and businesses in IRS collection matters, audits and tax disputes, and Phillip Mixon handles each case personally. Learn more at https://mixontaxlaw.com/about-law-firm/
Contact Info:
Name: Phillip Mixon
Email: Send Email
Organization: Mixon Tax Law
Address: 2000 S Dairy Ashford Rd Suite 298, Houston, Texas 77077, United States
Website: https://mixontaxlaw.com/
Source: NewsNetwork
Release ID: 89206681
If you encounter any issues, discrepancies, or concerns regarding the content provided in this press release that require attention or if there is a need for a press release takedown, we kindly request that you notify us without delay at [email protected] (it is important to note that this email is the authorized channel for such matters, sending multiple emails to multiple addresses does not necessarily help expedite your request). Our responsive team will be available round-the-clock to address your concerns within 8 hours and take necessary actions to rectify any identified issues or guide you through the removal process. Ensuring accurate and reliable information is fundamental to our mission.
