Question 1

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

Accepted Answer

You likely qualify if you owe $50,000 or less in combined taxes, penalties, and interest, and paying the full amount would create financial hardship. Self-employed individuals who've seen income drop 25% or more often qualify for significant relief. The qualification process involves proving to the IRS that full payment is impossible without creating genuine hardship. We analyze your income against necessary living expenses - housing, food, transportation, medical costs - to demonstrate what you can realistically afford. Many Pennsylvania residents qualify without realizing it. Between state income taxes, local earned income taxes, and federal obligations, your total tax burden might be unsustainable even with steady income. A professional evaluation reveals options you didn't know existed.

Question 2

What's the difference between an Offer in Compromise and installment agreement?

Accepted Answer

An Offer in Compromise settles your debt for a fraction of what you owe - sometimes 10 cents on the dollar or less. You pay the agreed amount, and the IRS forgives the rest permanently. This requires proving you can't pay the full amount now or in the foreseeable future. An installment agreement lets you pay your full debt over time with affordable monthly payments. The IRS stops collection activities while you're current, giving you breathing room without the strict financial requirements of an Offer in Compromise. Your best option depends on your financial reality. If you're barely making ends meet, an Offer in Compromise might eliminate most of your debt. If you have steady income but need time, an installment agreement provides manageable payments without the intensive financial scrutiny of an OIC.

Question 3

How long does the Fresh Start Program process take in Pennsylvania?

Accepted Answer

Installment agreements typically get approved within 30-60 days because they're straightforward payment plans. The IRS wants its money and will usually accept reasonable payment proposals quickly. Offers in Compromise take 6-12 months due to extensive IRS financial investigation. However, collection activities generally stop once we submit your application, providing immediate relief from wage garnishments and bank levies while your case is pending. Penalty abatement requests usually resolve within 2-4 months depending on complexity. The key is submitting complete, professional applications that address IRS concerns upfront rather than playing catch-up with rejected submissions and appeal processes.

Question 4

Can the Fresh Start Program help with both IRS and Pennsylvania state tax debt?

Accepted Answer

The federal Fresh Start Program only addresses IRS debt, but Pennsylvania offers its own relief programs including Deferred Payment Plans and limited Offers in Compromise for state taxes. We handle both simultaneously to resolve your complete tax situation. Pennsylvania's Department of Revenue can be just as aggressive as the IRS with wage garnishments, bank levies, and asset seizure. It also has no statute of limitations on collecting unpaid taxes, making professional resolution even more critical. Most of our Pennsylvania clients owe both federal and state taxes stemming from the same financial problems. We develop comprehensive strategies addressing both obligations, ensuring you're not blindsided by state collection actions while focusing only on federal relief.

Question 5

What happens if my Fresh Start Program application gets rejected?

Accepted Answer

Rejection isn't the end - it's often the beginning of a more targeted approach. The IRS must provide specific reasons for rejection, giving us a roadmap for addressing its concerns through appeals or resubmission with additional documentation. Most rejections stem from incomplete applications, incorrect calculations, or inadequately documented financial hardship. This is why professional representation matters - we know exactly what the IRS requires and how to present your case compellingly the first time. If one Fresh Start option fails, others might succeed. A rejected Offer in Compromise doesn't disqualify you from installment agreements or Currently Not Collectible status. We explore every available avenue until we find relief that works.

Question 6

How much does it cost to get help with the Fresh Start Program?

Accepted Answer

Our fees depend on your case complexity and the services required. We provide transparent, upfront pricing with no hidden costs or surprise bills later. Most clients find our fees are less than they'd pay in additional penalties and interest by trying to handle things themselves. Unlike companies that charge massive upfront fees regardless of results, we structure fair pricing based on actual work required. You'll know exactly what everything costs before making any commitment, with no pressure or high-pressure sales tactics. We offer free initial consultations to review your situation and explain options with no obligation. If you choose our services, we'll credit your consultation fee toward resolution work. Would you go to court without a lawyer? Then why face the IRS without professional representation?

IRS Fresh Start Program Avoy, PA