Question 1

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

Accepted Answer

The reduction depends on your specific financial situation and which program you qualify for. Offers in compromise can settle debts for significantly less—sometimes 10-20% of what you owe—but qualification is strict and based on your ability to pay. Installment agreements don't reduce the principal amount but can eliminate the immediate pressure and often include penalty reductions. Currently Not Collectible status doesn't reduce the debt but stops collection actions if you're experiencing financial hardship. The key is realistic expectations. We evaluate your income, assets, and expenses to determine what the IRS will actually accept, not what you hope they might accept. Some clients see dramatic reductions, others get manageable payment plans, and all get relief from collection actions.

Question 2

Do I qualify for the Fresh Start Program with my income level?

Accepted Answer

Fresh Start Program eligibility varies by the specific relief option, not just income level. For streamlined installment agreements, you can owe up to $50,000 and generally don't need to provide detailed financial information if you can make the required payments. Offers in compromise have stricter requirements and consider your income, assets, expenses, and future earning potential. The IRS uses specific formulas to determine what they consider collectible, and this varies significantly based on family size, necessary living expenses, and local cost of living standards. Wayne County's median household income of around $62,000 doesn't automatically disqualify anyone—we've helped clients with higher and lower incomes. What matters is your complete financial picture and which program best fits your situation. That's why we start with a thorough evaluation before recommending any specific approach.

Question 3

How long does the Fresh Start Program application process take?

Accepted Answer

Timeline varies significantly based on which program you're applying for and your specific circumstances. Streamlined installment agreements can be approved within 30-60 days if your paperwork is complete and you meet the basic requirements. Offers in compromise take much longer—typically 6-12 months or more—because the IRS conducts a thorough financial investigation. They verify your assets, income, and expenses before making a decision. Currently Not Collectible determinations usually take 2-4 months. The biggest factor affecting timeline is having complete, accurate financial documentation from the start. Missing paperwork, unreported assets, or incomplete tax returns can add months to the process. That's why we handle all the preparation work upfront and maintain regular communication with the IRS throughout the process to prevent delays.

Question 4

Can the IRS reject my Fresh Start Program application?

Accepted Answer

Yes, the IRS can and does reject applications that don't meet their requirements or aren't properly prepared. Common reasons include incomplete financial documentation, unrealistic settlement offers, or failure to demonstrate genuine financial hardship for certain programs. For offers in compromise, the IRS rejects applications where they believe you can pay more than you're offering, either through current assets or future income potential. They also reject applications from people who haven't filed all required tax returns or aren't current on estimated tax payments. This is exactly why professional representation matters. We know what the IRS looks for, how to present your financial information properly, and what constitutes a realistic settlement offer. We also handle any appeals process if an initial application is rejected, often succeeding on the second attempt with better documentation or a modified approach.

Question 5

What happens if I don't qualify for any Fresh Start Program options?

Accepted Answer

Even if you don't qualify for the main Fresh Start Program options, other tax resolution strategies exist. We can negotiate custom payment plans with terms that work for your budget, even if they don't fit the standard streamlined categories. Penalty abatement for reasonable cause can reduce your overall balance even if you don't qualify for debt reduction programs. We can also explore Currently Not Collectible status if you're experiencing temporary financial hardship, which stops collection actions while your situation improves. In some cases, the best strategy is simply negotiating directly with IRS revenue officers for realistic payment terms. We've secured affordable monthly payments for clients who didn't qualify for formal programs but demonstrated good faith efforts to resolve their debt. The key is having experienced representation who knows all available options, not just the widely advertised programs.

Question 6

Should I try to handle the Fresh Start Program application myself?

Accepted Answer

You can apply yourself, but the process is complex and mistakes are costly. The IRS requires specific financial forms, supporting documentation, and precise calculations that vary by program type. One error can result in rejection and restart the entire timeline. More importantly, you only get one chance at an offer in compromise every two years if rejected. If you submit an unrealistic offer or incomplete application, you're locked out of the program for 24 months while interest and penalties continue accumulating. Professional representation also provides protection during the process. When we submit applications, we can negotiate with IRS agents, handle requests for additional information, and appeal unfavorable decisions. You get someone standing between you and the IRS who speaks their language and knows their procedures. Would you go to court without a lawyer? Then why face the IRS without a trusted tax professional?  End the sleepless nights. Call 570-630-0201 or book online 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.

IRS Fresh Start Program Callapoose, PA