The IRS Fresh Start Program isn't a single program. It's a set of changes the IRS made between 2008 and 2012 that loosened eligibility requirements for installment agreements, Offers in Compromise, and lien filing thresholds. The name has stuck, but companies that market "the Fresh Start Program" as if it's some special application are usually just selling standard IRS resolution services at a markup.

What Fresh Start actually changed:

Tax liens: The IRS raised the threshold for filing a Notice of Federal Tax Lien from $5,000 to $25,000. If you owe less than $25,000 and enter a Direct Debit Installment Agreement, the IRS generally won't file a lien. For existing liens, they'll withdraw the lien once your balance is paid down to $25,000 or less (under certain conditions).

Installment agreements: The threshold for Streamlined Installment Agreements increased from $25,000 to $50,000. If you owe $50,000 or less (including penalties and interest), you can set up a monthly payment plan without providing detailed financial documentation. You get up to 72 months to pay. This is available online through the IRS website, and you can often set it up without talking to anyone.

Offers in Compromise: The IRS simplified the calculation for future income potential. Previously, they used a multiplier of 48 or 60 months of disposable income. Under Fresh Start, they reduced it to 12 months for lump sum offers and 24 months for periodic payment offers. This means more people qualify for lower offer amounts.

Penalty abatement: While not technically part of Fresh Start, the IRS has also become more flexible with first-time penalty abatement. If you've been compliant for the past 3 tax years (filed on time, paid on time), you can request removal of failure-to-file and failure-to-pay penalties for one tax year. This can save thousands of dollars.

The catch: Tax relief companies charge $3,000 to $7,000 (sometimes more) to help you apply for programs you can often access yourself. If you owe less than $50,000, a Streamlined Installment Agreement takes about 20 minutes to set up online. Don't pay someone thousands of dollars for a service the IRS provides for free or for a small setup fee ($31 for Direct Debit agreements).

For debts over $50,000 or situations involving multiple unfiled returns, business taxes, or a potential OIC, professional help is worth it. But start with the IRS website and a free consultation with a tax professional before signing any contract.