Question 1

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

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. The program is designed for taxpayers experiencing financial hardship who cannot pay their full tax debt.For self-employed individuals in Carbondale, you may need to demonstrate a 25% decline in income to qualify for certain benefits like penalty relief. The most important factor is your current financial situation—your income, necessary expenses, and ability to pay. We evaluate your specific circumstances during your free consultation to determine exactly which Fresh Start options you qualify for and which would provide the most relief for your situation.

Question 2

What's the difference between an installment agreement and an offer in compromise?

Accepted Answer

An installment agreement lets you pay your full tax debt over time through monthly payments, while an offer in compromise allows you to settle your debt for less than you actually owe. Think of an installment agreement as a payment plan—you still pay everything, just in smaller chunks over time.An offer in compromise is more like a settlement. If approved, you pay a reduced amount and the IRS forgives the rest. However, offers in compromise have stricter qualification requirements. The IRS must believe that what you're offering represents the most they can realistically collect from you. We analyze your financial situation to determine which option gives you the best outcome and the highest chance of approval.

Question 3

How long does the Fresh Start Program application process take in Pennsylvania?

Accepted Answer

The timeline varies depending on which Fresh Start option you pursue. Installment agreements can often be approved within 30-60 days if you qualify for streamlined processing. Offers in compromise typically take 6-12 months for the IRS to review and make a decision.Currently not collectible status can sometimes be granted within a few weeks if your financial hardship is clear and well-documented. The key to faster processing is submitting complete, accurate paperwork the first time. Missing documents or errors can add months to the process. That's why having experienced representation matters—we know exactly what the IRS needs and how to present your case for the fastest possible resolution.

Question 4

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

Accepted Answer

Yes, entering into a Fresh Start Program agreement typically stops most IRS collection actions, including wage garnishments and bank levies. Once we establish representation and begin the application process, the IRS generally halts aggressive collection activities.However, timing matters. If you already have a wage garnishment in place, we need to act quickly to get it released. The same goes for bank levies—the IRS can freeze your accounts with little warning. That's why you shouldn't wait if you're facing collection action. The moment you call us, we begin the process of stopping these collection activities and protecting your income and assets while we work on your long-term resolution.

Question 5

Can the Fresh Start Program help with both federal and Pennsylvania state taxes?

Accepted Answer

The IRS Fresh Start Program specifically applies to federal tax debt. However, Pennsylvania has its own tax relief programs and payment options for state tax debt. The good news is that many of the same strategies work for both federal and state taxes.We handle both federal and Pennsylvania state tax issues for our Carbondale clients. Often, resolving your federal tax problems makes it easier to address state tax debt as well. Pennsylvania Department of Revenue offers installment agreements and sometimes accepts offers in compromise for state taxes. We coordinate both federal and state resolutions to give you complete relief from all your tax problems, not just the federal portion.

Question 6

What happens if my Fresh Start Program application gets rejected?

Accepted Answer

Rejection isn't the end of the road. You have appeal rights, and often we can address the IRS's concerns and resubmit a stronger application. The most common reasons for rejection are incomplete financial information, unrealistic offer amounts, or missing documentation.When we represent you, we prepare your application to meet IRS standards the first time. If there is a rejection, we analyze exactly why and determine the best next step. Sometimes it's an appeal. Sometimes it's gathering additional documentation. Sometimes it's waiting for your financial situation to change and reapplying later. The key is having someone who understands the system and won't give up on getting you the relief you deserve. We've successfully helped clients who were initially rejected get approved on appeal or through revised applications.

IRS Fresh Start Program Carbondale, PA