Question 1

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

Accepted Answer

The reduction depends on your specific financial situation, but many clients see substantial decreases in what they owe. Through Offer in Compromise, eligible taxpayers can settle their debt for significantly less than the full amount—sometimes reducing their debt by 90% or more. The key is proving to the IRS that you cannot pay the full amount without causing financial hardship. We analyze your income, expenses, and assets to present the strongest case for debt reduction. Even if you don't qualify for the maximum reduction, we can often eliminate penalties and arrange affordable payment plans. Every case is different, which is why we provide a thorough evaluation of your situation before recommending the best Fresh Start option for your circumstances.

Question 2

Do I qualify for the Fresh Start Program if I owe less than $50,000?

Accepted Answer

Yes, owing less than $50,000 actually makes you eligible for streamlined installment agreements, which are easier to qualify for and require less financial documentation. This threshold was specifically designed to help taxpayers with moderate debt amounts get relief faster. If you owe $50,000 or less, you can qualify for payment plans up to 72 months with direct debit from your bank account. The IRS has also relaxed the financial documentation requirements for these agreements, making approval more likely. Even if you owe more than $50,000, you may still qualify by making a partial payment to bring your balance under the threshold. We help determine the best strategy based on your specific debt amount and financial situation.

Question 3

Will the IRS stop collection activities while my case is being processed?

Accepted Answer

Yes, once we submit your Fresh Start application, the IRS typically suspends most collection activities while they review your case. This means no more threatening letters, no wage garnishments, and no bank levies while we work on your resolution. However, this protection isn't automatic—it requires proper filing of the correct forms and following specific procedures. This is where professional representation becomes crucial. We know exactly how to trigger these protections and keep them in place throughout the process. The collection suspension gives you breathing room to get your finances in order while we negotiate the best possible settlement. It's one of the immediate benefits of working with our firm rather than trying to handle the IRS on your own.

Question 4

How long does the Fresh Start Program application process take?

Accepted Answer

The timeline varies depending on which Fresh Start option you're pursuing and the complexity of your case. Streamlined installment agreements can often be approved within 30-60 days, while Offer in Compromise cases typically take 6-12 months for full resolution. The IRS has specific timeframes they must follow. For example, if they don't respond to your Offer in Compromise within two years, it's automatically accepted. We track all deadlines and follow up aggressively to keep your case moving forward. We prioritize cases that face immediate collection threats like wage garnishments or bank levies. In emergency situations, we can often get temporary relief within days while working on your long-term resolution. The key is acting quickly—the sooner you start, the sooner you get relief.

Question 5

What happens if the IRS rejects my Fresh Start application?

Accepted Answer

Rejection isn't the end of the road—it's often just the beginning of negotiations. We analyze why the IRS rejected your application and address their specific concerns. Many cases that are initially rejected get approved on appeal or after providing additional documentation. Sometimes rejection happens because the IRS needs more information or disagrees with how we calculated your financial situation. We respond with detailed explanations and supporting evidence to overcome their objections. Our experience helps us anticipate what the IRS wants to see. If one Fresh Start option doesn't work, we explore alternatives. Maybe you don't qualify for an Offer in Compromise but can get an affordable installment plan. Or perhaps you qualify for Currently-Not-Collectible status while your financial situation improves. We don't give up until we find a solution that works.

Question 6

Can I apply for the Fresh Start Program if I haven't filed all my tax returns?

Accepted Answer

You must be current on all required tax filings before the IRS will consider your Fresh Start application. This is a strict requirement—they won't negotiate with taxpayers who aren't in compliance with filing obligations. The good news is that we handle all unfiled returns as part of our service. We prepare and file all missing returns, often using IRS records to reconstruct your tax information if you don't have complete documentation. This gets you into compliance quickly so we can move forward with your Fresh Start application. Filing missing returns often works in your favor because the IRS estimates are usually higher than what you actually owe. Once we file accurate returns, your debt often decreases significantly before we even begin the Fresh Start process. It's one more way we reduce what you owe to the IRS.

IRS Fresh Start Program Berlin, PA