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, but qualified taxpayers often see dramatic results. Some clients reduce their debt by 90% or more through an Offer in Compromise. For example, if you owe $50,000 but can only afford $5,000 based on your income and necessary expenses, the IRS may accept that lower amount as full settlement. The key is proving you genuinely can't pay the full amount without creating financial hardship. However, not everyone qualifies for maximum reduction. Some clients benefit more from installment agreements that spread payments over up to 72 months, or penalty abatement that eliminates thousands in fees while keeping the original tax debt intact.

Question 2

What are the income limits for the IRS Fresh Start Program?

Accepted Answer

There's no hard income limit, but your ability to pay is the determining factor. Generally, you're more likely to qualify if you're single earning under $100,000 or married earning under $200,000 annually. Self-employed individuals may qualify with higher incomes if they've experienced at least a 25% drop in earnings. The IRS also considers your necessary living expenses, not just gross income. For Chestnuthill residents, remember that Pennsylvania's 3.07% state income tax plus the township's 1% earned income tax affects your overall financial picture. We factor in all your tax obligations when building your case for relief.

Question 3

How long does the Fresh Start Program application process take?

Accepted Answer

Typically 6-12 months from start to finish, but it varies based on your specific situation and which relief option you pursue. Installment agreements often get approved faster than Offers in Compromise. The timeline also depends on how quickly we can gather your financial documentation and ensure all your tax returns are filed. Missing returns will delay everything, which is why we handle this step first. During the application process, IRS collection activities are generally suspended. This means no new levies or garnishments while your case is under review, giving you breathing room to get your finances stabilized.

Question 4

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

Accepted Answer

You must be current on all required tax filings before the IRS will consider any Fresh Start relief. This is non-negotiable—they won't even look at your application until every required return is submitted. We handle the preparation and filing of back tax returns as part of our service. Often, clients discover they owe less than expected once we properly calculate deductions and credits they missed. Getting compliant with filing requirements also stops the failure-to-file penalties, which can be 5% of your tax owed each month up to 25%. For someone owing $20,000, that's potentially $5,000 in additional penalties you can avoid by filing promptly.

Question 5

What happens if the IRS rejects my Fresh Start application?

Accepted Answer

Rejection isn't the end of the road. We can appeal the decision, submit additional documentation, or explore alternative relief options based on why it was rejected. Common rejection reasons include incomplete financial information, mathematical errors, or failure to demonstrate genuine financial hardship. These are often fixable issues when you have professional representation. If an Offer in Compromise gets rejected, we might pivot to an installment agreement or currently-not-collectible status. There are multiple paths to relief, and our job is finding the one that works for your specific situation.

Question 6

Do I really need professional help, or can I handle this myself?

Accepted Answer

You can attempt it yourself, but the error rate is extremely high. The IRS rejects the majority of self-prepared Offers in Compromise due to mistakes in paperwork or financial analysis. 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 just as high, and the rules are just as complex. Professional representation also means the IRS communicates directly with us, not you. No more stressful phone calls or intimidating letters. We handle everything while you focus on rebuilding your financial stability.  End the sleepless nights. Call 570-630-0201 or book online today. We will stand between you and the IRS, negotiate the lowest legal settlement, and give you the fresh start you deserve.

IRS Fresh Start Program Chestnuthill, PA