Question 1

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

Accepted Answer

You likely qualify if you owe $50,000 or less in combined taxes, penalties, and interest, and you're current on all required tax filings. Self-employed individuals in Canaan may qualify with a 25% income decline. The IRS also considers your ability to pay the full amount without causing financial hardship. If paying your tax debt would prevent you from covering basic living expenses, you're probably eligible for some form of Fresh Start relief. We determine your exact eligibility during our consultation by reviewing your IRS transcripts and financial situation. Most people who think they don't qualify actually do—the IRS wants to collect something rather than nothing.

Question 2

Can the Fresh Start Program really eliminate my entire tax debt?

Accepted Answer

Yes, through the Offer in Compromise option. If you can prove that paying your full tax debt would create financial hardship or that you'll never be able to pay the full amount, the IRS may accept a settlement for much less. We've seen clients settle $50,000 tax debts for $500. Others have eliminated penalties entirely, reducing their debt by 80% or more. The key is presenting your case correctly with proper financial documentation. However, debt elimination isn't guaranteed for everyone. The IRS evaluates your income, expenses, assets, and future earning potential. That's why professional representation matters—we know how to present your case for the best possible outcome.

Question 3

Will the IRS stop garnishing my wages once I apply?

Accepted Answer

Collection actions typically pause once you enter into an approved Fresh Start agreement. If you're approved for an installment plan, Offer in Compromise, or Currently-Not-Collectible status, wage garnishments and bank levies generally stop. However, you must stay current on your agreement terms. Missing payments can restart collection actions immediately. The IRS also expects you to file all future tax returns on time and pay any new taxes owed. We help ensure you stay compliant after resolution. Our ongoing support prevents future problems and keeps you in good standing with the IRS long-term.

Question 4

How long does the Fresh Start Program application process take?

Accepted Answer

Simple installment agreements can be approved within 30-60 days. More complex cases like Offers in Compromise typically take 6-12 months for the IRS to review and approve. The timeline depends on your specific situation and which Fresh Start option you pursue. Cases requiring extensive financial documentation take longer than straightforward payment plans. We keep you updated throughout the process and handle all IRS communication. While you wait for approval, collection actions are typically suspended, giving you immediate relief from the stress of potential garnishments or levies.

Question 5

What happens if the IRS rejects my Fresh Start application?

Accepted Answer

Rejection doesn't mean you're out of options. We can appeal the decision, submit additional documentation, or pursue a different Fresh Start option that better fits your situation. Sometimes the IRS rejects applications due to missing paperwork or incorrect calculations rather than actual ineligibility. We review their reasoning and address any deficiencies in a revised application. In worst-case scenarios, we can negotiate alternative payment arrangements or explore other IRS programs outside of Fresh Start. Our goal is finding a solution that works for your specific circumstances, even if it takes multiple attempts.

Question 6

Do I need a lawyer to apply for the Fresh Start Program?

Accepted Answer

While you can apply directly with the IRS, professional representation dramatically improves your chances of approval and getting the best possible terms. The IRS approves only 33% of Offers in Compromise submitted by taxpayers themselves. Tax professionals understand IRS procedures, know which forms to file, and how to present your financial information favorably. We also handle all negotiations and communications, protecting you from saying something that could hurt your case. Would you go to court without a lawyer? Of course not. Then why would you go before the IRS without a trusted tax professional? The stakes are too high to risk going it alone when professional help is available.

IRS Fresh Start Program Canaan, PA