Question 1

How do I know if I qualify for the IRS Fresh Start Program?

Accepted Answer

You likely qualify if you owe $50,000 or less in back taxes and can prove financial hardship or inability to pay the full amount. The program expanded qualification criteria in recent years to help more taxpayers. Most people who owe back taxes qualify for at least one Fresh Start option. The key factors are your total debt amount, current financial situation, and compliance with filing requirements. You must have filed all required tax returns before the IRS will consider any payment arrangements. During your free consultation, we'll review your specific situation and determine exactly which programs you qualify for. Don't assume you don't qualify - the requirements are more flexible than most people realize.

Question 2

How much can the Fresh Start Program actually reduce my tax debt?

Accepted Answer

Debt reduction varies based on your financial situation, but reductions of 70-90% are common through Offers in Compromise. Some taxpayers achieve complete debt forgiveness if they qualify for hardship status. Penalty abatement alone can cut your debt significantly since penalties and interest often exceed the original tax owed. For example, if you owe $30,000 but $20,000 is penalties, removing those penalties drops your debt to $10,000. The exact amount depends on your income, expenses, assets, and ability to pay. The IRS uses specific formulas to calculate settlement offers, which is why professional representation is crucial for maximizing your debt reduction.

Question 3

How long does the Fresh Start Program process take to complete?

Accepted Answer

Most cases resolve within 3-6 months, though complex situations may take longer. Installment agreements often get approved within 30-60 days, while Offers in Compromise can take 6-12 months. The timeline depends on which program you're applying for and how quickly you provide required documentation. Missing paperwork or incomplete financial disclosures will delay the process significantly. Having professional representation speeds things up because we know exactly what the IRS needs and how to present your case properly the first time. We handle all communication with the IRS, so you don't have to wait on hold or deal with different agents giving conflicting information.

Question 4

What happens if the IRS rejects my Fresh Start application?

Accepted Answer

Rejection isn't the end of the road - most rejections happen because of incomplete applications or missing documentation. Professional representation significantly increases approval rates because we know exactly what the IRS requires. If your initial application gets rejected, we can appeal the decision or resubmit with additional supporting documentation. Sometimes a different Fresh Start option works better for your situation than the first one attempted. The worst thing you can do is give up after a rejection. The IRS collection machine doesn't stop, and your debt continues growing with penalties and interest. Professional help ensures you explore every available option until you find the right solution.

Question 5

Can I apply for the Fresh Start Program if I'm already facing wage garnishment?

Accepted Answer

Yes, you can still apply even with active wage garnishments or bank levies. In fact, these collection actions often strengthen your case for hardship relief under the Fresh Start Program. Once you submit a complete application for certain Fresh Start options, the IRS may suspend collection activities while reviewing your case. This can provide immediate relief from garnishments while they process your request. Time is critical when facing active collection. The sooner you apply, the sooner you can potentially stop the garnishment and work out a manageable payment arrangement. Don't wait until your next paycheck gets seized.

Question 6

Do I need to hire a professional or can I handle Fresh Start applications myself?

Accepted Answer

You can technically apply yourself, but professional representation dramatically improves your chances of approval and maximizes potential debt reduction. The IRS doesn't make this process user-friendly. Tax professionals know which programs you qualify for, how to present your financial information favorably, and what documentation the IRS requires. We also handle all negotiations and communications, protecting you from saying something that could hurt your case. Consider this: you're negotiating with trained IRS agents who handle these cases daily. Having an experienced professional who knows their tactics and procedures levels the playing field. The potential savings usually far exceed the cost of professional representation.

IRS Fresh Start Program Alford, PA