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 significant savings are possible. Offers in Compromise can reduce debt by 90% or more for qualified taxpayers. The IRS accepts these offers when the reduced amount represents the most they can reasonably collect from you.

To qualify, your offer must equal or exceed what the IRS calculates as your "reasonable collection potential." This considers your assets, income, and necessary living expenses. If you owe $50,000 but can only afford $5,000 based on your financial situation, that offer might be accepted.

However, not everyone qualifies for maximum reduction. Some cases benefit more from installment agreements or penalty abatement. That's why professional evaluation is crucial - you want the solution that provides the most relief for your specific circumstances.

Question 2

Will the IRS Fresh Start Program stop wage garnishment immediately?

Accepted Answer

Yes, but the timing depends on which relief option you pursue. When you enter into an installment agreement, wage garnishments typically stop once the IRS processes your application. This usually takes 30-60 days from submission.

For Offers in Compromise, garnishments generally stop while your offer is being evaluated, which can take several months. If you're facing immediate garnishment, Currently Not Collectible status can provide faster relief by demonstrating financial hardship.

The key is acting quickly and having proper representation. We can often expedite these processes by communicating directly with IRS agents and ensuring all paperwork is complete and accurate from the start.

Question 3

Do I need to file all my back tax returns before applying?

Accepted Answer

Yes, you must be current with all required tax filings to qualify for most Fresh Start Program benefits. The IRS won't negotiate payment plans or debt reduction while you have unfiled returns outstanding. This is one of their fundamental requirements.

We handle the entire process - preparing and filing missing returns, then immediately moving into Fresh Start applications. We can often prepare multiple years of returns quickly using IRS transcripts and available records.

Filing back returns might initially increase your total debt, but it's necessary to access relief programs. Often, the penalties for unfiled returns are much higher than the actual taxes owed, and these penalties can be reduced or eliminated through the Fresh Start Program once you're compliant.

Question 4

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

Accepted Answer

Installment agreements typically process within 30-60 days for straightforward cases. Streamlined agreements for debts under $50,000 move faster because they require less financial documentation and IRS review.

Offers in Compromise take longer - usually 6-12 months for complete processing. The IRS must thoroughly review your financial situation, verify information, and often requests additional documentation during evaluation.

Currently Not Collectible status can be granted relatively quickly - sometimes within weeks - when proper financial hardship documentation is provided. Penalty abatement requests vary widely depending on the reason for penalties and supporting documentation available.

Having professional representation speeds up every process because applications are complete and accurate from submission, reducing back-and-forth requests for additional information.

Question 5

What happens if the IRS rejects my Fresh Start application?

Accepted Answer

Rejection doesn't end your options. Most rejections happen because of incomplete applications, insufficient financial documentation, or choosing the wrong relief program for your situation. We review rejection letters to understand exactly why applications were denied.

Often, rejected applications can be resubmitted with additional information or corrections. Sometimes a different Fresh Start option works better - if an Offer in Compromise is rejected, an installment agreement might be approved immediately.

You also have appeal rights for most IRS decisions. The appeals process provides another opportunity to present your case with additional evidence or different arguments. Professional representation becomes even more valuable during appeals because the process is more complex and formal.

Question 6

Can I apply for the Fresh Start Program if I'm self-employed?

Accepted Answer

Absolutely. Self-employed individuals often benefit most from Fresh Start Programs because their income fluctuates and they face unique tax challenges. The IRS recognizes that self-employed taxpayers have different financial situations than traditional employees.

Self-employed applicants need more detailed financial documentation, including profit and loss statements, business expense records, and cash flow analysis. We help gather and organize this information to present the strongest possible case.

Many self-employed individuals qualify for Currently Not Collectible status during slow business periods, then transition to installment agreements when income improves. The key is demonstrating your true financial capacity while accounting for business expenses and irregular income patterns.

Would you go to court without a lawyer? Of course not! Then why would you go before the IRS without a trusted tax professional? Call 570-630-0201 or text 570-470-5228 today. All County Tax Resolution will stand between you and the IRS, negotiate the lowest legal settlement, and give you the fresh start you deserve. Payment plans available with Mastercard and Visa accepted (4% convenience fee applies).

IRS Fresh Start Program Cortez, PA