Question 1

How much can I actually save through the IRS Fresh Start Program?

Accepted Answer

Eligible taxpayers may be able to reduce 90% or more of what they owe depending on their financial situation. The exact amount depends on your income, expenses, assets, and ability to pay. An offer in compromise allows you to settle your tax debt for less than the full amount you owe. It may be a legitimate option if you can't pay your full tax liability or doing so creates a financial hardship.For example, if you owe $25,000 but can only afford $3,000 based on your financial condition, the IRS may accept that lower amount as full settlement. The IRS generally approves an offer in compromise when the amount you offer represents the most they can expect to collect within a reasonable period of time. The key is proving your financial hardship and presenting a realistic offer the IRS will accept.

Question 2

What if I owe more than $50,000 in back taxes?

Accepted Answer

You may qualify for the Fresh Start Program if you meet these basic requirements: Owe $50,000 or less in taxes, penalties, and interest (or reduce your debt to this amount). However, there are still options if you owe more than $50,000. You might qualify for penalty abatement to reduce your total debt below the threshold, or you could pursue a traditional Offer in Compromise outside the streamlined Fresh Start process.Many clients don't realize how much of their debt consists of penalties and interest rather than actual taxes owed. Penalty abatement reduces the financial burden of late filing or payment penalties. Penalties can quickly balloon your debt, but the program offers relief options for those with a history of compliance facing unexpected financial hardship. Penalty abatement is a great benefit that can save thousands of dollars for eligible taxpayers. Professional representation is especially important for larger debts because the stakes are higher.

Question 3

How long does the Fresh Start Program application process take?

Accepted Answer

The processing time for applications under the Fresh Start Initiative can vary depending on the type of relief requested and the volume of applications the IRS is receiving. Generally, an Offer in Compromise can take anywhere from 6 to 12 months for the IRS to review and respond. Other forms of relief, such as installment agreements, can be processed more quickly, sometimes within a few weeks.The good news is that the IRS suspends other collection activities while your application is being reviewed. This means no more threatening letters, no wage garnishments, and no bank levies while you wait for a decision. Having professional representation often speeds up the process because your application is complete and properly documented from the start, reducing the chance of delays or rejections.

Question 4

Will applying for the Fresh Start Program hurt my credit score?

Accepted Answer

The Fresh Start Program actually helps protect your credit in several ways. The Fresh Start program has also made significant changes to how the IRS handles tax liens. The program increased the tax debt threshold for filing a lien from $5,000 to $10,000, meaning fewer taxpayers face liens on their credit reports. The IRS has also made it easier to get liens withdrawn after paying tax debt or setting up a direct debit installment agreement.If you already have a tax lien on your credit report, getting accepted into the program can help you get it removed faster than trying to pay the full amount over time. The IRS doesn't release federal tax liens until your offer terms are satisfied, but once you complete your agreement, the lien comes off your credit report. This is much better than having a lien remain for years while you struggle to pay the full debt.

Question 5

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

Accepted Answer

You must be current on all required tax filings before applying for most Fresh Start options. You need to have filed all required tax returns and made all required estimated payments. However, this doesn't mean you can't get help - it just means filing those missing returns is the first step.Professional tax resolution services can help you get caught up on unfiled returns quickly and correctly. We know how to minimize additional penalties and interest while getting you compliant. The taxpayers who may not qualify for this program include individuals who haven't filed all required tax returns or are not current with estimated tax payments, but once you're current, all the Fresh Start options become available to you.

Question 6

What happens if the IRS rejects my Fresh Start application?

Accepted Answer

If your initial application gets rejected, you have appeal rights and alternative options. A tax relief service can help you find alternative solutions for managing your tax debt, which could include: Custom installment agreements, Alternative OIC arrangements, Penalty and interest abatement, Emergency collection relief, Currently not collectible status and audit defense services.Professional representation significantly improves your chances of acceptance because we know exactly how to document your case and present it in the best light. The tax relief experts who work for these services understand how to present your financial situation effectively to maximize chances of acceptance. Even if your first attempt doesn't work, there are usually other strategies available. The worst thing you can do is give up and let the debt continue growing with penalties and interest.Call 570-630-0201 or text 570-470-5228 to book your free consultation today. Payment options available including Mastercard and Visa with a 4% convenience fee.

IRS Fresh Start Program Canadensis, PA