Question 1

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

Accepted Answer

The reduction amount depends on your specific financial situation and which program you qualify for. Offers in Compromise can reduce debt by 90% or more in qualifying cases, but you must prove the settlement amount is the most you can reasonably pay based on your income and assets. Installment agreements don't reduce the principal amount but can eliminate future penalties and interest if you stay current with payments. Penalty abatement can remove 25-75% of your total debt by eliminating failure-to-file and failure-to-pay penalties. The key is having a qualified professional evaluate your case properly. Many taxpayers assume they don't qualify for significant reductions when they actually do, or conversely, they expect unrealistic outcomes. We provide honest assessments during our free consultation so you know exactly what's possible in your situation.

Question 2

What happens if the IRS rejects my Fresh Start Program application?

Accepted Answer

IRS rejection doesn't mean your case is hopeless—it usually means the application wasn't prepared correctly or the wrong program was chosen for your situation. This is why professional representation matters from the start. If an Offer in Compromise is rejected, we can appeal the decision, request reconsideration with additional documentation, or pivot to a different resolution strategy like an installment agreement or hardship status. Each program has different qualification criteria and documentation requirements. The IRS rejects about 60% of offers submitted by taxpayers representing themselves, but acceptance rates are much higher when qualified professionals handle the case. We know exactly how IRS agents evaluate applications and what documentation strengthens your case. Even if your first application is rejected, we use that feedback to build a stronger strategy for resolution.

Question 3

How long does the IRS Fresh Start Program process take?

Accepted Answer

Timeline varies significantly based on which program you pursue and how complex your case is. Installment agreements can often be approved within 30-60 days if you owe less than $50,000 and qualify for streamlined processing. Offers in Compromise take longer—typically 6-12 months from application to final decision. The IRS has specific timeframes they must follow, but they often request additional documentation that can extend the process. Currently-Not-Collectible status can be granted relatively quickly if you meet hardship criteria. During the application process, collection actions are typically suspended, giving you immediate relief from wage garnishments and levy threats. We keep you updated throughout the process and handle all IRS communication, so you're not left wondering what's happening with your case. The key is starting the process as soon as possible since penalties and interest continue accumulating until you're in an approved program.

Question 4

Will the IRS Fresh Start Program affect my credit score?

Accepted Answer

The Fresh Start Program can actually improve your credit situation by resolving tax liens and stopping collection actions. Tax liens severely damage credit scores, but the program raised the threshold for filing liens from $5,000 to $10,000, protecting more taxpayers. If you already have a tax lien, entering certain Fresh Start programs can get it withdrawn from your credit report. This happens when you set up direct debit installment agreements or successfully complete an Offer in Compromise. Lien withdrawal removes the negative mark entirely, unlike lien release which shows the debt was paid but leaves the filing history. However, the IRS may file new liens during the application process if your debt exceeds $10,000 and you're not in an approved payment plan. This is why timing matters and why professional representation helps navigate these requirements. We structure applications to minimize credit impact while maximizing your chances of approval for the best possible resolution.

Question 5

Do I qualify for the IRS Fresh Start Program if I'm self-employed?

Accepted Answer

Yes, self-employed taxpayers can qualify, but there are additional requirements you must meet. You need to be current on all estimated tax payments for the current year, which many self-employed taxpayers struggle with due to irregular income. Self-employed individuals often owe both income taxes and self-employment taxes, which can create larger debt amounts. However, this also means penalty abatement can provide significant relief since self-employment penalties are substantial. You'll need to provide detailed financial statements showing your business income and expenses. The challenge for self-employed taxpayers is proving financial hardship when income varies seasonally or annually. We help document your situation properly, showing the IRS your true ability to pay based on realistic income projections. Many self-employed taxpayers successfully qualify for installment agreements or Offers in Compromise when their cases are presented correctly with proper documentation.

Question 6

What's the difference between the Fresh Start Program and hiring a tax resolution company?

Accepted Answer

The Fresh Start Program refers to IRS policies that make relief options more accessible—it's not a separate application you submit. Tax resolution companies like us help you navigate these programs and represent you during the process. You can technically apply for Fresh Start Program benefits yourself, but the paperwork is complex and mistakes are costly. IRS agents aren't required to tell you about all available options or help you choose the best one for your situation. They're focused on collecting the full amount as quickly as possible. Professional representation levels the playing field. We know which documentation strengthens your case, how to present financial information favorably, and what arguments are most effective with IRS agents. We also handle all communication so you avoid saying something that could hurt your case. The goal is getting you the lowest legal settlement possible, not just any settlement the IRS will accept. Would you go to court without a lawyer? Of course not! Then why would you go before the IRS without a trusted tax professional? 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 Creamton, PA