Question 1

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

Accepted Answer

Qualified taxpayers can potentially reduce their federal tax debt by up to 90% through the IRS Fresh Start Program, specifically through an Offer in Compromise. However, the actual reduction depends on your financial circumstances, including income, expenses, assets, and ability to pay. The IRS uses a formula to determine the lowest amount they'll accept, based on what they could reasonably collect from you over time. If you're facing genuine financial hardship with limited income and assets, you may qualify for significant debt reduction. Not everyone qualifies for an Offer in Compromise, but other Fresh Start options like installment agreements or Currently Not Collectible status can still provide substantial relief.

Question 2

What are the requirements to qualify for IRS Fresh Start Program?

Accepted Answer

To qualify for any Fresh Start Program option, you must first be current on all required tax filings. The IRS won't consider your application if you have unfiled returns. You also need to be current on estimated tax payments if you're self-employed or have other income requiring quarterly payments. For streamlined installment agreements, you can owe up to $50,000 and don't need to provide detailed financial statements. For Offers in Compromise, there's no specific debt limit, but you must demonstrate financial hardship or that collecting the full amount would create economic hardship. The IRS also considers your age, health, employment history, and earning potential when evaluating your case.

Question 3

How long does the IRS Fresh Start Program application process take?

Accepted Answer

The timeline varies significantly depending on which Fresh Start option you pursue and the complexity of your case. Streamlined installment agreements can often be approved within 30-60 days since they require minimal documentation and review. Offers in Compromise typically take 6-12 months or longer, as the IRS conducts thorough financial analysis and may request additional documentation. During this time, collection actions are generally suspended, giving you breathing room. Currently Not Collectible determinations can happen more quickly, often within 60-90 days, but require detailed financial disclosure to prove hardship.

Question 4

Will the IRS Fresh Start Program stop wage garnishments and bank levies?

Accepted Answer

Yes, entering the Fresh Start Program typically stops most IRS collection actions, including wage garnishments and bank levies. When you submit a complete application for an installment agreement or Offer in Compromise, the IRS generally suspends collection activities while reviewing your case. However, this protection isn't automatic - you need to submit a complete, properly prepared application. If the IRS rejects your application or you default on an approved agreement, collection actions can resume. This is why professional representation is crucial to ensure your application is complete and compliant from the start, maximizing your protection from collection actions.

Question 5

Can I apply for the IRS Fresh Start Program on my own?

Accepted Answer

Technically yes, you can apply for Fresh Start options yourself, but it's rarely advisable for complex cases. The IRS forms are complicated, and one mistake can result in rejection, delays, or acceptance of unfavorable terms. The IRS isn't your advocate - they're focused on collecting as much as possible. Professional representation levels the playing field. We know how to present your financial information in the most favorable light, which documentation to include, and how to negotiate with IRS agents. We also protect you from saying something that could hurt your case during IRS interviews. Most importantly, we ensure you're applying for the right program based on your specific circumstances, not just guessing.

Question 6

What happens if my IRS Fresh Start Program application gets rejected?

Accepted Answer

If your application is rejected, you typically have the right to appeal the decision within 30 days. The appeals process allows you to present additional information or argue why the IRS's determination was incorrect. Many cases that are initially rejected can be successful on appeal with proper representation. If the appeal is unsuccessful, you're not out of options. You may be able to reapply in the future if your financial circumstances change, or explore other Fresh Start options that might be more suitable for your situation. The key is having professional guidance to understand why the application was rejected and what steps to take next. Collection actions may resume after rejection, so time is critical in determining your next move.  End the sleepless nights. Call 570-630-0201 or book online today. We will stand between you and the IRS, negotiate the lowest legal settlement, and give you the fresh start you deserve. Would you go to court without a Lawyer? Of course not! Then why would you go before the IRS without a trusted Tax Professional? Contact us at 570-470-5228 for texting. We accept Mastercard and Visa with a 4% convenience fee.

IRS Fresh Start Program Brainerd Center, PA