Question 1

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

Accepted Answer

The amount depends on your financial situation and which program you qualify for. Offers in Compromise can reduce debt by 90% or more if you meet specific criteria. For example, if you owe $50,000 but can only pay $5,000 based on your income and assets, the IRS might accept that lower amount as payment in full. Penalty abatement can eliminate 25-40% of your total debt since penalties often make up a large portion of what you owe. Currently Not Collectible status doesn't reduce the debt but stops all collection actions, and the debt may eventually expire under the statute of limitations. The exact reduction depends on factors like your income, expenses, asset value, and ability to pay. That's why a professional evaluation is essential to determine your best options.

Question 2

What happens to IRS collection actions once I get representation?

Accepted Answer

Collection actions typically stop immediately once All County Tax Resolution contacts the IRS on your behalf. The IRS must deal with your representative instead of contacting you directly. This means no more threatening letters, phone calls to your workplace, or surprise visits. If you're facing immediate garnishment or levy, we can often get these stopped within 24-48 hours by filing the proper paperwork. However, this protection only lasts while you're actively working toward a resolution. The key is acting quickly. Once a levy hits your bank account or garnishment starts on your paycheck, it's much harder to reverse than it is to prevent. That's why calling at the first sign of IRS collection activity is crucial.

Question 3

Do I qualify for the IRS Fresh Start Program?

Accepted Answer

Most people with tax debt qualify for at least one Fresh Start option. The basic requirements are filing all required tax returns and having a legitimate reason for falling behind on payments. Common qualifying situations include job loss, medical expenses, business failure, divorce, or other financial hardship. For Offers in Compromise, you must prove you cannot pay the full amount based on your current financial situation. For installment agreements, you need steady income to make monthly payments. Currently Not Collectible status requires demonstrating that paying would create financial hardship. The IRS updated the Fresh Start guidelines in recent years to help more taxpayers qualify. Even if you were denied before, you might qualify now under the expanded criteria. A professional evaluation determines which programs fit your specific situation.

Question 4

How long does the IRS Fresh Start process take?

Accepted Answer

Timeline varies by program type and complexity of your case. Installment agreements often get approved within 30-60 days. Penalty abatement requests typically take 2-4 months. Currently Not Collectible status can be granted within weeks if you provide complete financial documentation. Offers in Compromise take the longest—usually 6-12 months from submission to final decision. However, collection actions stop during this review period, giving you immediate relief from IRS pressure. The process moves faster when you have professional representation because tax professionals know exactly what documentation the IRS requires and how to present your case effectively. DIY attempts often get delayed or rejected due to incomplete paperwork or improper presentation.

Question 5

What if I haven't filed tax returns in several years?

Accepted Answer

You must file all required returns before the IRS will consider any Fresh Start relief options. This is non-negotiable. However, having unfiled returns doesn't disqualify you from the program—it just means filing returns is the first step. All County Tax Resolution can prepare and file missing returns using available records from employers, banks, and other sources. We can also request wage and income transcripts directly from the IRS to reconstruct your tax history. Once returns are filed, you immediately become eligible for Fresh Start programs. In many cases, filing missing returns actually reduces your total debt because the IRS estimates tend to be higher than what you actually owe. Getting current on filings is often the fastest way to reduce your overall tax liability.

Question 6

Can the IRS reject my Fresh Start application?

Accepted Answer

Yes, the IRS can reject applications that don't meet program requirements or lack proper documentation. Common rejection reasons include incomplete financial disclosure, unrealistic payment proposals, or failure to demonstrate genuine financial hardship. However, rejection doesn't end your options. You can appeal the decision, provide additional documentation, or apply for a different program. Professional representation significantly improves approval odds because tax professionals understand exactly what the IRS looks for in successful applications. All County Tax Resolution reviews your case thoroughly before submission to maximize approval chances. If an application gets rejected, we analyze the reasons and determine the best next steps, whether that's appealing, reapplying with additional information, or pursuing alternative relief options.

IRS Fresh Start Program Auburn Center, PA