Question 1

How much of my tax debt can the Fresh Start Program eliminate?

Accepted Answer

The amount varies based on your financial situation, but many taxpayers see reductions of 90% or more through the program. An Offer in Compromise, for example, can settle your entire debt for a fraction of what you owe if you meet the qualification criteria. The IRS considers your ability to pay, income, expenses, and asset equity when evaluating your case. If paying the full amount would create financial hardship, they often accept significantly less. We've helped clients settle $50,000 debts for under $5,000 in the right circumstances. The key is presenting your case properly with complete financial documentation and expert negotiation. The IRS receives thousands of applications, and those prepared by professionals have much higher success rates than self-submitted requests.

Question 2

What happens if I owe more than $50,000 to the IRS?

Accepted Answer

You still have options even with larger tax debts. While streamlined installment agreements are limited to $50,000, you can still qualify for regular installment plans with higher debt amounts. The process requires more documentation and IRS approval, but it's absolutely possible. Offers in Compromise aren't limited by debt amount—they're based on your ability to pay. We've successfully negotiated settlements for clients owing six figures to the IRS. The larger your debt, the more important professional representation becomes. Currently-Not-Collectible status can also provide relief regardless of debt size if you're experiencing genuine financial hardship. This stops all collection activity while you get back on your feet financially.

Question 3

How long does the Fresh Start Program application process take?

Accepted Answer

Timeline varies by program type, but most cases resolve within 6-12 months when handled professionally. Installment agreements often get approved within 30-60 days since they're more straightforward. Offers in Compromise typically take 6-12 months because they require extensive financial review. The IRS has specific deadlines for responding to applications, but they often request additional documentation that can extend the timeline. Having experienced representation speeds up the process because we know exactly what information to provide upfront. During the application period, collection activities typically stop, giving you immediate relief from wage garnishments and bank levies. This protection alone makes starting the process worthwhile, even before final approval.

Question 4

Will applying for the Fresh Start Program stop IRS collection actions immediately?

Accepted Answer

Yes, in most cases. When we submit certain applications like an Offer in Compromise or appeal a collection action, the IRS must halt aggressive collection activities during the review period. This includes stopping wage garnishments, bank levies, and asset seizures. However, the IRS can still file tax liens during the application process, and they'll continue charging interest and penalties on your debt. The key is acting quickly before collection actions escalate—once your wages are being garnished, it's much more urgent to get protection in place. Some programs provide automatic collection protection, while others require specific requests for Collection Due Process hearings. We handle all these procedural requirements to ensure you get maximum protection throughout the resolution process.

Question 5

Do I need to file all my missing tax returns before applying?

Accepted Answer

Yes, you must be current with all required tax filings to qualify for most Fresh Start Program benefits. The IRS won't negotiate settlements or payment plans if you have unfiled returns outstanding. This is often the first step we handle for clients. Filing missing returns can actually help your case in many situations. Sometimes the IRS estimates your income higher than reality, and filing accurate returns reduces your actual tax debt. We've seen cases where filing missing returns eliminated thousands in penalties and interest. We help clients prepare and file all outstanding returns as part of our comprehensive service. This ensures you're fully compliant and eligible for all available relief programs. Trying to skip this step usually results in application rejections and wasted time.

Question 6

What if the IRS rejects my Fresh Start Program application?

Accepted Answer

Rejection doesn't end your options—it usually means the application needs refinement or you should pursue a different program. The IRS provides specific reasons for rejections, and experienced professionals can often address these issues and resubmit successfully. Sometimes rejection happens because your financial situation changed between application and review. Job loss, medical expenses, or other hardships that occurred after filing can actually strengthen your case for reconsideration or appeal. We also pursue multiple strategies simultaneously when appropriate. If an Offer in Compromise gets rejected, you might still qualify for an installment agreement, penalty abatement, or Currently-Not-Collectible status. The goal is finding the program that works best for your specific circumstances.

IRS Fresh Start Program Ararat, PA