Question 1

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

Accepted Answer

The amount depends on your specific financial situation and which Fresh Start option you qualify for. Through an Offer in Compromise, some taxpayers can reduce their debt by 90% or more if they can demonstrate they'll never be able to pay the full amount. Penalty Abatement can eliminate thousands in penalties, sometimes cutting your debt in half if most of your balance comes from late filing or payment penalties. Even if you don't qualify for debt reduction, streamlined installment agreements can make your payments much more affordable. The key is having a professional evaluate your case properly. Many taxpayers assume they don't qualify for significant relief when they actually do, simply because they don't know how to present their financial situation correctly to the IRS.

Question 2

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

Accepted Answer

Yes, you can still qualify even if you owe more than $50,000. The $50,000 limit only applies to streamlined installment agreements, which are the simplest payment plans. If you owe more, you may still qualify for other Fresh Start options like an Offer in Compromise or regular installment agreement. You can also make a partial payment to reduce your balance below $50,000, which would then make you eligible for the streamlined process. This approach often makes sense if you have some available funds but can't pay the full amount. The most important factors are being current on all tax filings and demonstrating financial hardship or inability to pay the full amount. The IRS looks at your income, expenses, and assets to determine what you can realistically afford to pay.

Question 3

How long does the Fresh Start Program application process take?

Accepted Answer

The timeline varies depending on which option you're applying for and how complete your financial documentation is. Streamlined installment agreements can be approved in as little as 30 days if everything is properly prepared. Offers in Compromise typically take 6-12 months for the IRS to review and make a decision. Currently-Not-Collectible status can often be approved within 60-90 days. Penalty Abatement requests may be processed in 30-60 days depending on the complexity of your case and the reasons for the penalties. Working with a professional can significantly speed up the process because we know exactly what documentation the IRS needs and how to present your case for the fastest approval. We also handle all follow-up communications, so you don't have to worry about missed deadlines or requests for additional information.

Question 4

Will the IRS stop collection activities while my Fresh Start application is pending?

Accepted Answer

In most cases, yes. When you submit a properly prepared Fresh Start application, the IRS typically suspends collection activities like wage garnishments, bank levies, and asset seizures while they review your case. This gives you breathing room to resolve your situation without facing aggressive collection actions. However, the IRS may still file tax liens during the application process, and they'll continue adding interest to your balance. If you're approved for an installment agreement, you must make all required payments on time to maintain the protection from collection activities. If your application is rejected, collection activities can resume, which is why it's crucial to submit a strong, well-documented application the first time. Having professional representation ensures your application meets all IRS requirements and has the best chance of approval.

Question 5

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

Accepted Answer

No, you must be current on all required tax filings before you can apply for Fresh Start relief. The IRS requires this to ensure you're committed to staying compliant with your tax obligations going forward. If you have unfiled returns, we can help you get those prepared and submitted first. Getting caught up on filing is actually easier than most people think, and it often reveals that you owe less than you feared. Sometimes unfiled returns show refunds that can be applied to reduce your overall debt. Other times, the IRS has estimated your income too high, and filing accurate returns reduces your balance. Once all returns are filed, you can immediately apply for Fresh Start relief. The IRS views taxpayers who voluntarily come forward to file missing returns more favorably than those who wait until they're forced to file, which can improve your chances of approval for debt relief programs.

Question 6

What happens if my Fresh Start Program application is denied?

Accepted Answer

If your initial application is denied, you have appeal rights and can often resubmit with additional documentation or corrections. Many denials happen because of incomplete financial information or calculation errors, not because you're truly ineligible for relief. We review the denial letter carefully to understand exactly why the IRS rejected your application. Often, we can address their concerns and resubmit a stronger application. Sometimes a different Fresh Start option might be more appropriate for your situation. Even if one type of relief is denied, you may still qualify for other options. For example, if an Offer in Compromise is rejected, you might still qualify for an installment agreement or Currently-Not-Collectible status. The key is having an experienced professional who knows how to navigate the system and present your case effectively. Would you go to court without a lawyer? Of course not! Then why would you go before the IRS without a trusted tax professional? Call 570-630-0201 or text 570-470-5228 today. All County Tax Resolution will stand between you and the IRS, negotiate the lowest legal settlement, and give you the fresh start you deserve. We accept Mastercard and Visa with a 4% convenience fee.

IRS Fresh Start Program Burnwood, PA