Question 1

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

Accepted Answer

Eligible taxpayers can reduce 90% or more of their total tax debt through the Fresh Start Program. The exact amount depends on your financial situation and which program you qualify for. An Offer in Compromise might settle $50,000 in tax debt for $5,000 if you meet the requirements. Currently-Not-Collectible status can pause all payments indefinitely during financial hardship. Penalty abatement alone often cuts tax bills in half by removing costly penalties and reducing interest charges. The IRS designed these programs specifically for taxpayers overwhelmed by back taxes. They want to collect something rather than nothing, which is why they're willing to accept significantly reduced settlements from qualified applicants.

Question 2

What are the income requirements for the IRS Fresh Start Program?

Accepted Answer

There's no single income requirement because the Fresh Start Program includes multiple options with different qualifications. Streamlined installment agreements are available for taxpayers owing up to $50,000, regardless of income level. For Offers in Compromise, the IRS looks at your ability to pay based on income, expenses, and assets. If your monthly disposable income is low relative to your tax debt, you're more likely to qualify for significant debt reduction. Currently-Not-Collectible status is specifically for taxpayers whose income barely covers basic living expenses. The IRS uses national and local standards to determine if your income qualifies you for hardship status, which temporarily stops all collection activity.

Question 3

How long does the Fresh Start Program application process take?

Accepted Answer

The timeline varies by program type, but most Fresh Start applications take 6-12 months for the IRS to process. Streamlined installment agreements are the fastest, often approved within 30-60 days. Offers in Compromise take longer because they require extensive financial documentation and IRS review. The process typically takes 8-12 months, but your case is protected from enforcement action while under review. During this time, we handle all IRS communication and keep you updated on your case status. The key is submitting a complete, accurate application the first time—incomplete applications get rejected and restart the entire timeline.

Question 4

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

Accepted Answer

You must file all required tax returns before applying for most Fresh Start Program options. This is a fundamental requirement the IRS won't waive—they need to know exactly how much you owe before considering any settlement. We help clients prepare and file all missing returns as part of the process. This often reveals that you owe less than expected, especially if you're entitled to refunds in some years that offset taxes owed in others. Once all returns are filed, we can pursue the Fresh Start option that best fits your situation. Some taxpayers discover they qualify for Currently-Not-Collectible status or significant penalty abatement once their complete tax picture is clear.

Question 5

What happens to tax liens during the Fresh Start Program process?

Accepted Answer

Tax liens can be withdrawn under the Fresh Start Program once your balance drops below $25,000 through payments or settlement. This removes the lien from your credit report and stops it from affecting your credit score. If you enter a streamlined installment agreement, the IRS won't file new liens as long as you stay current on payments. For balances under $10,000, they typically won't file liens at all. During Offer in Compromise negotiations, existing liens remain but collection activity stops. If your offer is accepted, all liens are released once you complete the settlement terms. This restoration of your credit standing is one of the most valuable benefits of the Fresh Start Program.

Question 6

How much does professional help with the Fresh Start Program cost?

Accepted Answer

Our fees depend on the complexity of your case and which Fresh Start options we pursue. We provide transparent pricing during your free consultation—no hidden costs or surprise charges. Many clients find that professional representation pays for itself through the tax savings we negotiate. If we reduce your tax debt by $30,000, our fees represent a small fraction of what you save. We accept Mastercard and Visa with a 4% convenience fee, and we can discuss payment arrangements that fit your budget. The consultation is completely free with no obligation, so you can understand your options and our fees before making any decisions.

IRS Fresh Start Program Bloomington, PA