Question 1

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

Accepted Answer

Through an Offer in Compromise, you might settle for 10-20% of your debt if you can show you truly cannot afford to pay the full amount. However, the IRS evaluates each case individually based on your income, expenses, and assets.Penalty abatement alone can save thousands of dollars for eligible taxpayers who have a history of compliance but faced unexpected financial hardship. The exact amount depends on your specific situation, but we've helped Cherry Ridge clients reduce their total debt significantly through various Fresh Start options.The key is demonstrating genuine financial hardship and inability to pay. If the IRS sees that you can pay more, even over time, they probably will not accept a reduced offer. That's why professional representation is crucial - we know how to present your case effectively.

Question 2

Will the IRS stop trying to collect from me during the Fresh Start process?

Accepted Answer

Yes, if you're approved for an installment agreement or hardship status (Currently Not Collectible), most collection actions like wage garnishments or bank levies pause or stop. This gives you breathing room to work toward a permanent solution.However, collection actions don't automatically stop just because you apply. The IRS can take aggressive collection actions like wage garnishments and bank levies if debt remains unresolved. That's why it's important to act quickly and work with professionals who can expedite the process.Once we submit your application and the IRS accepts it for processing, you're generally protected from most collection activities. This protection continues as long as you comply with the terms of your agreement and make required payments on time.

Question 3

What happens if I owe more than $50,000 to the IRS?

Accepted Answer

The streamlined Fresh Start options are available for those owing $50,000 or less, but that doesn't mean you're out of options if you owe more. You can still pursue traditional installment agreements, Offers in Compromise, and other resolution methods.For debts over $50,000, the IRS requires more detailed financial disclosure and documentation. The process takes longer and involves more scrutiny, but resolution is still possible. We've successfully negotiated agreements for Cherry Ridge clients with six-figure tax debts.We recently worked with a service-based business owner assessed over $265,000 in income taxes who hadn't filed in over 10 years. We were able to negotiate an Offer in Compromise for less than $5,000. Every case is different, but significant debt reduction is possible with proper representation.

Question 4

How long does the IRS Fresh Start Program application process take?

Accepted Answer

The review process can take several months, especially for Offers in Compromise. The IRS isn't quick to respond and oftentimes it's a waiting game. However, streamlined installment agreements typically process faster than complex settlement negotiations.The timeline depends on which Fresh Start option you pursue and how complete your application is when submitted. Providing inaccurate financial disclosures can lead to rejected applications, which delays resolution and can restart collection actions.For tax lien removal, you generally need to make three successful monthly payments before the IRS will remove the lien. We manage the entire timeline for you, providing regular updates and ensuring all deadlines are met to avoid delays that could jeopardize your case.

Question 5

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

Accepted Answer

You must be current on all required tax filings to qualify for Fresh Start Program benefits. The IRS will not grant relief to individuals who have unfiled tax returns. This is a non-negotiable requirement.However, we can help you get compliant first, then pursue Fresh Start relief. The IRS generally requires you to file the last six years of tax returns and pay any tax liability you may owe. We prepare all missing returns and then immediately apply for appropriate relief programs.If you haven't filed in several years, it's crucial to file all missing returns as soon as possible. Not filing on time causes late filing and late payment penalties to be added along with interest. The sooner we get you compliant, the sooner we can stop the penalty clock and begin negotiating your resolution.

Question 6

Is the IRS Fresh Start Program legitimate or just marketing hype?

Accepted Answer

The IRS Fresh Start Program is a legitimate initiative introduced by the IRS to help individuals and businesses struggling with tax debt. Launched in 2011 and expanded over the years, it provides various options designed to make it easier for taxpayers to pay off their debts.The legitimacy is sometimes questioned due to misinformation and misleading marketing from third-party tax relief companies. These companies often exaggerate benefits or misrepresent qualifications to sell their services. That's why working with experienced, local professionals matters.The program is active and available in 2025 as an official set of IRS policies and procedures. It's an official initiative created by the Internal Revenue Service and has been widely used to provide financial relief for eligible taxpayers. The key is understanding exactly what you qualify for and having realistic expectations about outcomes.

IRS Fresh Start Program Cherry Ridge, PA