Question 1

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

Accepted Answer

You likely qualify if you owe $100,000 or less in combined taxes, penalties, and interest, and have filed all required tax returns. The program specifically targets taxpayers experiencing financial hardship who cannot pay their full debt immediately without creating severe economic strain.Self-employed individuals who've experienced a 25% or greater income drop typically qualify. Single taxpayers earning under $100,000 annually and married couples under $200,000 often meet income thresholds. The key requirement is demonstrating that paying your full tax debt would prevent you from meeting basic living expenses like housing, food, and transportation.

Question 2

What's the difference between installment agreements and Offers in Compromise?

Accepted Answer

Installment agreements let you pay your full tax debt over time in manageable monthly payments - typically 72 months or less. You still owe the complete amount plus interest, but you avoid collection actions while making consistent payments. Most taxpayers qualify for streamlined agreements with minimal paperwork.An Offer in Compromise actually reduces what you owe, sometimes dramatically. If approved, you settle your entire tax debt for a fraction of the original amount - we've seen reductions of 90% or more. However, qualification requires proving you cannot pay the full debt based on your current financial situation, making it harder to qualify but potentially saving tens of thousands if you do.

Question 3

Will the Fresh Start Program stop IRS collection actions immediately?

Accepted Answer

Once your Fresh Start application is approved and you're making required payments, the IRS stops collection actions like wage garnishment, bank levies, and asset seizure. However, this protection doesn't begin automatically when you apply - it starts when your application is formally accepted.If you're facing immediate collection action, we can request a Collection Due Process hearing or temporary delay while your application is processed. The key is acting before the IRS takes action, not after your wages are already being garnished. Time is critical when dealing with IRS collection notices.

Question 4

How long does the Fresh Start Program application process take?

Accepted Answer

Streamlined installment agreements can be approved within 2-4 weeks if you meet the qualification criteria and provide complete documentation. More complex cases like Offers in Compromise typically require 6-12 months for the IRS to review, investigate, and make a final decision.The timeline depends heavily on your specific situation, how quickly you provide required financial documentation, and which type of relief you're requesting. Working with experienced tax professionals who understand IRS procedures and requirements can significantly accelerate the process and improve your approval odds.

Question 5

What happens if my Fresh Start Program application gets denied?

Accepted Answer

If your initial application is denied, you have several options depending on the reason for denial. You can appeal the decision within 30 days if you believe the IRS made an error in reviewing your case, or you can reapply with additional documentation that addresses their specific concerns.Many denials result from incomplete financial information, calculation errors, or missing supporting documentation rather than actual disqualification. We carefully review denial letters to identify the exact issues, then determine whether appealing, reapplying with corrections, or pursuing alternative relief options will be most effective for your situation.

Question 6

Should I try applying for the Fresh Start Program myself?

Accepted Answer

You can apply directly to the IRS using forms available on their website, but the process is more complex than most people realize. Small mistakes in financial calculations, missing documentation, or choosing the wrong relief option can result in denial and wasted months of time.The IRS doesn't provide guidance on which option is best for your situation or help you present your case effectively. Would you go to court without a lawyer? Then why would you face the IRS without a qualified tax professional? Professional representation typically results in better outcomes, faster processing, and significantly higher approval rates than attempting the process alone.

IRS Fresh Start Program Atco, PA