IRS Fresh Start may expand your tax payment options, but there’s one thing to be aware of

The start of April means that Tax Day is quickly approaching — and many Americans still need to file in the coming weeks. So far, the IRS says it has received about $78.8 million in tax refunds, down from $79.6 million this time last year.

If you haven’t filed, you still have a few weeks until the April 15 deadline. During that time, you should both file your federal tax return and pay any money you owe. If you can’t pay the taxes you owe in full, your tax costs can rise quickly.

Taxpayers who owe balances have several options for repaying the IRS, including payment plans and forbearance plans. But if you owe back taxes, you may start seeing targeted ads from companies that promise a fresh start by paying off your debt for much less than what you owe.

However, these companies often make promises of savings that they can’t back up and offer services that you already get through the IRS directly.

Here’s what you need to know about IRS debt relief programs, and how to find out if you qualify today.

Read more: What if I can’t pay my taxes? 5 ways to deal with your debt.

Fresh Start is not really an IRS program that will erase your tax balance or eliminate debt.

Fresh Start is a program started in 2011 that simply expanded the existing IRS payment options available to eligible taxpayers.

The changes were designed to “help struggling taxpayers get a fresh start,” according to the IRS. Specifically, the Fresh Start program focuses on two goals: helping Americans pay their taxes and avoid tax liens.

To help taxpayers pay the taxes they owe, the IRS expanded its offer in compromise (OIC) to include taxpayers with incomes up to $100,000 who owe less than $50,000 (doubling the $25,000 limit at that time). An offer of compromise allows eligible taxpayers to settle their debts with the IRS for less than what they owe. Acceptance of the offer is based on the taxpayer’s ability to pay in full based on their income and assets.

To get help with federal tax liens, the Fresh Start program increased the dollar amount taxpayers must owe before the IRS files a lien against their property and assets, and allowed taxpayers to request that the lien be canceled after payment. Taxpayers who owe less than $25,000 may also request that the lien be lifted after entering into or converting to a direct debit agreement.

The changes made through Fresh Start in 2011 still apply to eligible taxpayers who owe balances to the IRS today. Here’s more information about how loan waivers and waivers work today – and how to find out if you’re eligible.

Today, you can submit an IRS compliant gift online to try to settle your tax debt for less than what you owe. You don’t need to work with a third-party firm to receive compensation, and the IRS advises that you be sure to check the qualifications of any professional you hire to help you with your gift.

You can apply for OIC yourself. The IRS will consider your offer and your overall finances, including income, expenses, and assets. The IRS says it usually approves compromise offers “when the amount you offer represents the most we can expect to collect within a reasonable period of time.”

When you apply, you will need to submit both the $205 application fee and your down payment (unless you qualify for low income status), as well as the required forms. Depending on the offer, the payment will be a lump sum amounting to 20% of your contribution amount or a monthly installment payment. You must also continue to make the payments described in your application while you await approval by the IRS.

If the IRS places a lien on your property, you can request a discharge after paying what you owe, which will remove the Public Notice of Federal Tax Lien. Foreclosure can help your credit score, even if you still owe a tax balance.

The withdrawal options introduced by the Fresh Start program are still valid today.

First, you may qualify for a withdrawal after you’ve paid off your tax balance and been up-to-date with payments and filings for at least three years.

Another option allows you to request a withdrawal after you enter into a direct debit agreement with the IRS and meet certain eligibility requirements, including the following:

• Be a qualified taxpayer

• You owe less than $25,000

• Have a direct debit agreement that will pay off your balance in full within 60 months

• You have already made three consecutive direct debit payments

• Compliance with other payments and filings

• You have not defaulted on any direct debit scheme (current or past)

Direct debit installment agreements are long-term payment plan options available to taxpayers who owe $50,000 or less (including taxes, penalties, and interest payments) and have filed all their returns. With this type of plan, you can make monthly payments towards your balance for up to 72 months. Direct debit allows you to link your bank account so that your monthly payment is withdrawn automatically.

Today, the IRS requires a direct debit for installment plans with balances between $25,000 and $50,000. If you apply for a long term installment agreement via direct debit online, there is a $22 setup fee (unless you qualify for low income status).

Contributions in reconciliation and withdrawal are two IRS programs available to eligible taxpayers who owe a balance of taxes. If you’re having trouble paying your taxes or aren’t sure if you’ll be able to pay the full amount you owe this year, here are a few other options to consider:

The short-term payment plan through the IRS gives you up to 180 additional days to pay your balance in full. You can qualify with a balance of $100,000 or less in combined taxes, penalties, and interest. There’s no setup fee, but you’ll still accrue fees and interest as you pay off your plan balance.

You can also apply for a long-term installment agreement (like the one described above). This can be helpful in paying down your balance, even if the IRS has not yet placed a lien on your property.

You can request by phone that the IRS place your account in “currently non-collectible” (CNC) status if you are experiencing financial hardship. You’ll still owe your full balance — and continue to accrue penalties and interest — but the IRS will stop collection.

Over time, the agency will review your financial situation to determine whether you can continue to make payments.

Instead of a plan with the IRS, you can use a personal loan or 0% APR credit card to pay the taxes you owe, then pay off the balance of the loan or card.

You will generally need a good credit score to qualify for either. But IRS interest rates may still be lower than the personal loan rates you qualify for. Even with a credit card with a 0% APR, you’ll be at risk of earning interest on the card’s continuously high interest rate if you don’t pay off your balance in full at the end of the introductory period. Also, you will have to pay a fee to pay your tax balance with a credit card.

Check the eligibility offer and make sure you have a payment plan before you decide whether a loan or credit card might be an affordable option.