Question 1

How much tax debt do I need to qualify for the IRS Fresh Start Program?

Accepted Answer

You can qualify for streamlined installment agreements if you owe $50,000 or less in combined tax debt. If you owe more than $50,000, you may still qualify by making a partial payment to reduce your balance below this threshold. For Offers in Compromise, there's no minimum debt requirement, but you must prove that paying the full amount would cause financial hardship. The IRS looks at your income, expenses, assets, and future earning potential to determine if you qualify for a reduced settlement. The key is demonstrating that you genuinely cannot pay the full amount owed. Our team analyzes your complete financial picture to determine which Fresh Start options give you the best outcome for your specific situation.

Question 2

Will the IRS stop collection actions while my Fresh Start application is processed?

Accepted Answer

Yes, most collection actions pause once you enter an approved Fresh Start program. If you're accepted for an installment agreement, Offer in Compromise, or Currently Not Collectible status, the IRS typically stops wage garnishments, bank levies, and asset seizures. However, collection protection doesn't start until your application is officially accepted. That's why proper preparation and submission are crucial. One mistake on your forms can lead to rejection and continued collection actions. We ensure your application meets all IRS requirements from day one. We've seen too many Auburn residents try to handle this alone, only to face continued collection actions because their paperwork was incomplete or incorrectly prepared.

Question 3

How long does the IRS Fresh Start Program application process take?

Accepted Answer

The timeline varies depending on which program you're applying for and how well your application is prepared. Streamlined installment agreements can be approved within 30-60 days if all documentation is complete and accurate. Offers in Compromise typically take 6-12 months because the IRS conducts a thorough financial investigation. Currently Not Collectible status can be approved in 30-90 days, while penalty abatement requests usually process within 60-90 days. The biggest factor affecting timeline is application quality. Incomplete forms, missing documentation, or calculation errors cause delays and rejections. We prepare everything correctly the first time, which significantly reduces processing time and increases your approval chances.

Question 4

Can the Fresh Start Program help with both federal and Pennsylvania state taxes?

Accepted Answer

The IRS Fresh Start Program specifically addresses federal tax debt. However, Pennsylvania has its own tax relief programs that work similarly to the federal options, including installment agreements and offers in compromise for state taxes. Many Auburn residents owe both federal and state taxes, especially small business owners who've fallen behind on quarterly payments. We handle both simultaneously to ensure you get comprehensive relief from all tax authorities. Pennsylvania's state tax relief programs have different eligibility requirements and procedures than the federal Fresh Start Program. We know both systems inside and out, so we can coordinate your federal and state tax resolution for maximum savings and convenience.

Question 5

What happens if my Offer in Compromise is rejected by the IRS?

Accepted Answer

If your initial Offer in Compromise is rejected, you have several options. You can appeal the decision within 30 days, providing additional documentation or arguments for why your offer should be accepted. Alternatively, you can submit a new offer with different terms or apply for a different Fresh Start program like an installment agreement. The key is understanding why the original offer was rejected and addressing those specific issues. Many rejections happen because of calculation errors, insufficient financial documentation, or failure to meet technical requirements. We review every rejection letter carefully and determine the best strategy moving forward. We've successfully converted many rejected offers into approved settlements through proper appeals or revised applications.

Question 6

Do I need to file all my back tax returns before applying for Fresh Start?

Accepted Answer

Yes, you must be current on all tax filings to qualify for any Fresh Start Program option. The IRS requires all missing returns to be filed before they'll consider your application for relief. This is often the biggest hurdle for Auburn residents who've fallen behind. Missing returns create additional penalties and interest, making your debt larger. But filing them is mandatory for Fresh Start eligibility. We handle the entire process, from preparing and filing your missing returns to calculating your total debt and preparing your Fresh Start application. We ensure everything is filed correctly and on time, so there are no delays in getting your tax relief approved.

IRS Fresh Start Program Auburn, PA