Question 1

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

Accepted Answer

You likely qualify if you owe back taxes and can demonstrate financial need or hardship. The program is designed for taxpayers who want to resolve their debt but need realistic payment terms or debt reduction. For installment agreements, you generally qualify if you owe less than $50,000 and can pay the balance within 72 months. Offers in Compromise require proving you can't pay the full amount based on your income, expenses, and asset value. Currently Not Collectible status applies when paying anything would create genuine financial hardship. The key is having all your tax returns filed and being current on estimated payments if you're self-employed. We review your specific situation during your free consultation to determine which options give you the best outcome.

Question 2

Can the IRS Fresh Start Program really eliminate 90% of my tax debt?

Accepted Answer

Yes, through an Offer in Compromise, but qualification requirements are strict. The IRS will only accept significantly less than you owe if you can prove paying the full amount would create financial hardship or is unlikely based on your income and assets. They calculate what you can reasonably pay using a specific formula that considers your monthly income, necessary living expenses, and asset values. If that amount is substantially less than your total debt, you may qualify for dramatic debt reduction. However, most taxpayers benefit more from installment agreements or penalty abatement, which are easier to obtain and provide immediate relief from collection actions. We analyze all options during your consultation to recommend the strategy most likely to succeed in your specific situation.

Question 3

What happens to IRS collection actions while you're negotiating my case?

Accepted Answer

Most IRS collection activity stops once we submit your Fresh Start application and begin negotiations. This includes wage garnishments, bank levies, and asset seizures in most cases. The IRS typically won't pursue aggressive collection actions while you're working in good faith to resolve your debt through their official programs. However, interest and penalties may continue accruing until we reach a final agreement. If you're facing immediate collection action like a bank levy or wage garnishment, we can often get those released quickly by demonstrating you're pursuing resolution through Fresh Start. The key is acting fast - don't wait until your wages are already being garnished to seek help.

Question 4

How long does the IRS Fresh Start Program process take?

Accepted Answer

Simple installment agreements can be approved within 30-60 days, especially for debts under $50,000 using streamlined procedures. More complex cases like Offers in Compromise typically take 6-12 months for the IRS to review and approve. The timeline depends largely on how quickly we can gather required financial documentation and how complex your case is. Self-employed taxpayers or those with multiple years of unfiled returns usually take longer because there's more paperwork involved. We keep you updated throughout the process and handle all IRS communication, so you're never left wondering what's happening. Most clients see collection actions stop within the first 30-60 days, giving you immediate relief even while we're working toward final resolution.

Question 5

Will applying for Fresh Start relief hurt my credit score?

Accepted Answer

The Fresh Start application itself doesn't directly impact your credit score. However, if you already have tax liens filed, those are affecting your credit and will remain until resolved through the program. One major benefit of Fresh Start is lien withdrawal - once your balance drops below $25,000 through payments or debt reduction, you can request removal of tax liens from your credit report. This often improves credit scores significantly. Installment agreements and successful Offers in Compromise demonstrate to future creditors that you've resolved your tax issues responsibly. Many clients find their overall financial picture improves dramatically once they're no longer dealing with IRS collection actions and accumulating penalties.

Question 6

Should I try to negotiate with the IRS myself or hire a professional?

Accepted Answer

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 IRS processes thousands of Fresh Start applications monthly, and they know exactly which ones to approve and which to deny. Tax professionals understand the specific language, documentation, and presentation that gets cases approved. We know which financial information to highlight and which arguments resonate with IRS agents. Most importantly, we handle all communication so you never have to deal directly with the IRS. The cost of professional representation is typically far less than what you'll save through proper negotiation. Plus, mistakes in your application can result in rejection and restart the entire process. Given what's at stake - your wages, bank accounts, and peace of mind - professional representation is usually the smartest investment you can make.  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 Covington, PA