Question 1

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

Accepted Answer

Qualification depends on several factors: your total tax debt amount, current financial situation, and compliance with tax filings. Generally, you need to owe $50,000 or less to qualify for streamlined installment agreements, though higher amounts may qualify for other relief options. Your income, expenses, and assets determine eligibility for Offers in Compromise. The IRS uses a formula to calculate your "reasonable collection potential"—essentially what they believe you can realistically pay. If this amount is less than your total debt, you may qualify for significant debt reduction. The key requirement across all Fresh Start options is being current on tax filings. You can't negotiate relief for past years while ignoring current obligations. We handle getting you compliant as part of our service.

Question 2

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

Accepted Answer

Debt reduction varies dramatically based on your financial situation, but the results can be substantial. Offers in Compromise regularly reduce total debt by 70-90% for qualified applicants. We've seen clients with $50,000 in tax debt settle for $3,000 or less. Penalty abatement alone can cut your bill in half since penalties often equal or exceed the original tax amount. Interest reduction through installment agreements prevents your debt from growing while you pay it off. Currently-Not-Collectible status stops collection entirely until your financial situation improves. The exact reduction depends on your income, necessary living expenses, assets, and ability to pay. During our free consultation, we calculate realistic expectations for your specific case rather than making promises we can't keep.

Question 3

What happens if the IRS rejects my Fresh Start application?

Accepted Answer

Rejection doesn't mean you're out of options. The IRS often rejects initial applications due to incomplete documentation, calculation errors, or choosing the wrong relief program for your situation. This is why professional representation matters—we know how to prepare applications correctly the first time. If an application is rejected, we can appeal the decision, submit additional documentation, or pivot to a different relief option. Sometimes a rejected Offer in Compromise leads to an approved installment agreement that's still much better than your current situation. The worst outcome is usually ending up with a manageable payment plan rather than the crushing debt you started with. Even "unsuccessful" Fresh Start applications typically result in better terms than trying to handle the IRS on your own.

Question 4

How long does the Fresh Start Program application process take?

Accepted Answer

Timeline varies by relief type and case complexity. Installment agreements often get approved within 30-60 days. Offers in Compromise take longer—typically 6-12 months for the IRS to review and respond. Currently-Not-Collectible status can be granted relatively quickly if you meet the financial hardship criteria. During the application process, the IRS typically suspends collection activities. This means no wage garnishments, bank levies, or asset seizures while your case is under review. You get breathing room to resolve your situation properly. We keep you updated throughout the process and handle all IRS communication. You won't be left wondering what's happening or dealing with confusing IRS correspondence. Our job is to manage the bureaucracy so you can focus on moving forward.

Question 5

Can I apply for the Fresh Start Program if I have unfiled tax returns?

Accepted Answer

You must be current on all tax filings before the IRS will consider any Fresh Start relief options. This is non-negotiable. However, having unfiled returns doesn't disqualify you permanently—it just means we need to get you compliant first. We handle preparing and filing missing returns as part of our service. Often, clients discover they owe less than expected once returns are properly filed. Some even receive refunds that reduce their overall debt. Getting current on filings is always the first step in any tax resolution strategy. The IRS views unfiled returns as ongoing non-compliance, which makes them unwilling to negotiate. Once you're current, you become eligible for all Fresh Start options based on your financial situation. We streamline this process to get you to the negotiation table as quickly as possible.

Question 6

What if I can't afford to pay anything right now?

Accepted Answer

Currently-Not-Collectible (CNC) status exists specifically for taxpayers facing genuine financial hardship. If paying your tax debt would prevent you from meeting basic living expenses, the IRS may temporarily suspend collection activities until your situation improves. CNC status isn't debt forgiveness—you still owe the money, and interest continues accruing. However, it stops wage garnishments, bank levies, and other aggressive collection actions while giving you time to stabilize financially. Many clients use this breathing room to increase their income or reduce expenses. We help document your financial hardship according to IRS standards. This includes proving your income barely covers necessary living expenses like housing, food, transportation, and medical care. The key is presenting your case professionally with proper documentation rather than simply claiming you can't pay.

IRS Fresh Start Program Bohemia, PA