Question 1

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

Accepted Answer

You likely qualify if you owe back taxes and can demonstrate financial hardship or inability to pay the full amount. The program is designed for taxpayers who are overwhelmed by tax debt and penalties, not those trying to avoid legitimate obligations. Key factors include your current income, necessary living expenses, asset values, and total tax debt. For Offers in Compromise, the IRS looks at your ability to pay based on income and assets. Most taxpayers with debts under $50,000 can access streamlined installment agreements without extensive financial disclosure. The best way to know for certain is through a professional evaluation. All County Tax Resolution provides free consultations to assess your specific situation and determine which Fresh Start options apply to your case.

Question 2

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

Accepted Answer

An installment agreement lets you pay your full tax debt over time in monthly payments. You still owe the complete amount, but you avoid collection actions while making payments. The IRS offers streamlined agreements for debts up to $50,000 with minimal paperwork. An Offer in Compromise actually reduces the total amount you owe. If accepted, you pay a fraction of your original debt and the IRS forgives the rest. This option requires proving you cannot pay the full amount due to financial hardship or doubt about the debt's accuracy. Installment agreements are easier to obtain but don't reduce your debt. Offers in Compromise are harder to qualify for but can eliminate 90% or more of what you owe. The right choice depends on your income, assets, and ability to pay over time.

Question 3

How long does the Fresh Start Program process take?

Accepted Answer

Most cases resolve within 3-6 months, though complex situations may take longer. Streamlined installment agreements often process in 30-60 days since they require minimal documentation for qualifying taxpayers. Offers in Compromise take longer—typically 6-12 months—because the IRS conducts thorough financial investigations. They review bank statements, asset values, income sources, and living expenses before making decisions. Currently-Not-Collectible status and penalty abatement requests usually process in 2-4 months. The timeline depends on your responsiveness in providing required documents, IRS workload, and the complexity of your case. All County Tax Resolution handles all communications and paperwork to keep things moving as quickly as possible while ensuring your application is complete and accurate.

Question 4

Will the IRS stop collection actions while my case is being reviewed?

Accepted Answer

Yes, most Fresh Start applications trigger automatic collection holds while the IRS reviews your case. This means no new levies, wage garnishments, or asset seizures during the review period. For installment agreements, collection stops once you submit a complete application and make your first payment. Offer in Compromise applications also halt collection activities, provided you include the required initial payment and meet all filing requirements. However, existing levies may continue unless specifically released. If you're facing imminent collection action, All County Tax Resolution can request immediate holds and work to get existing levies released while pursuing your Fresh Start relief. Time is critical—the sooner you apply, the sooner collection pressure stops.

Question 5

What happens if my Offer in Compromise gets rejected?

Accepted Answer

You have several options if the IRS rejects your initial offer. You can appeal the decision within 30 days, providing additional documentation or arguments for why your offer should be accepted. Many rejected offers succeed on appeal with proper representation. You can also submit a new offer with different terms or updated financial information. Sometimes circumstances change, or the initial offer didn't accurately reflect your true financial situation. A revised offer might be more acceptable to the IRS. Alternatively, you can pursue other Fresh Start options like installment agreements or Currently-Not-Collectible status. Rejection of an Offer in Compromise doesn't disqualify you from other relief programs. All County Tax Resolution evaluates all available options to find the best solution for your specific situation, even after initial setbacks.

Question 6

Do I need professional help or can I apply for Fresh Start relief myself?

Accepted Answer

You can technically apply yourself, but professional representation dramatically improves your chances of success. The IRS reports that taxpayers with professional representation are 5-10 times more likely to have their applications accepted. Tax professionals understand IRS procedures, know which documentation is required, and can present your case in the most favorable light. We also handle all communications with the IRS, protecting you from making statements that could hurt your case. The cost of professional help is usually a fraction of what you'll save through successful relief. All County Tax Resolution offers free consultations to evaluate your case and explain your options. Given the complexity of IRS procedures and the stakes involved, professional representation is almost always worth the investment.

IRS Fresh Start Program Baoba, PA