Question 1

Do I qualify for the IRS Fresh Start Program in Pennsylvania?

Accepted Answer

You may qualify if you owe $50,000 or less in combined taxes, penalties, and interest, and you're current on all required tax filings. The program is designed for taxpayers who can demonstrate financial hardship or inability to pay their full debt without economic strain.Self-employed individuals in Cresco often qualify if they've experienced a 25% or more drop in income - something we see frequently with seasonal businesses in the Pocono Mountains area. Even if you think you make too much money, the IRS looks at your actual ability to pay after necessary living expenses.The key is acting quickly. The longer you wait, the more penalties and interest accumulate, potentially pushing you over the $50,000 threshold. We can review your specific situation during a free consultation and tell you exactly which options are available.

Question 2

How much will I have to pay under a Fresh Start installment agreement?

Accepted Answer

Your monthly payment depends on your income, necessary expenses, and total debt amount. Many Cresco residents are surprised to learn their payments can be as low as $25-50 per month, even on substantial tax debts.The IRS uses a formula that considers your housing, transportation, food, and other essential expenses. For a family of four in Monroe County, this might mean payments of $100-300 per month on a $20,000 debt instead of the IRS demanding the full amount immediately.Streamlined installment agreements for debts under $50,000 require less financial documentation and can extend up to 72 months. This gives you manageable payments while avoiding the more invasive financial disclosure process required for larger debts.

Question 3

Can the Fresh Start Program really reduce what I owe to the IRS?

Accepted Answer

Yes, through several different mechanisms. An Offer in Compromise can reduce your debt by 90% or more if you qualify - we've seen $50,000 debts settled for $5,000 or less. But you must prove you truly cannot pay the full amount.Penalty Abatement often provides more immediate relief. Penalties can represent 50-75% of your total debt, especially if you've been dealing with this for years. If you have reasonable cause for your tax issues - job loss, medical emergency, business failure - we can often eliminate these penalties entirely.Currently Not Collectible status doesn't reduce what you owe, but it stops all collection actions and prevents your debt from growing while you get back on your feet. After a few years, if your financial situation hasn't improved, the debt may become uncollectible due to the statute of limitations.

Question 4

What happens if the IRS rejects my Fresh Start application?

Accepted Answer

Rejection isn't the end of the road - it's often just the beginning of negotiations. The IRS rarely accepts first offers, especially for Offer in Compromise applications. They'll typically counter with a higher amount or request additional documentation.This is where professional representation becomes crucial. We know how to respond to IRS objections, what additional evidence to provide, and how to structure counteroffers that get accepted. Many cases that initially look hopeless end up with favorable resolutions after proper negotiation.If one Fresh Start option doesn't work, we explore others. Maybe you don't qualify for an Offer in Compromise, but you can get a manageable installment agreement with penalty abatement. The key is having someone who understands all your options and won't give up after the first "no."

Question 5

How long does the Fresh Start Program process take in Pennsylvania?

Accepted Answer

Installment agreements typically get approved within 30-60 days if you meet the streamlined criteria. These are the fastest and most straightforward Fresh Start options, especially for Cresco residents with straightforward financial situations.Offer in Compromise applications take longer - usually 6-12 months from start to finish. The IRS needs time to thoroughly review your financial situation and determine your ability to pay. During this time, most collection actions are suspended, giving you breathing room.Penalty Abatement requests can often be resolved in 30-90 days, depending on the complexity of your case and how well-documented your reasonable cause is. Currently Not Collectible status can sometimes be granted immediately if your financial hardship is severe and well-documented.

Question 6

Will the Fresh Start Program stop IRS wage garnishments and bank levies?

Accepted Answer

Yes, in most cases. Once you're accepted into an approved Fresh Start program - whether it's an installment agreement, Offer in Compromise, or Currently Not Collectible status - the IRS typically releases existing levies and stops new collection actions.If you're already facing wage garnishment, getting into a Fresh Start program can often get it released within a few weeks. The IRS wants to collect what you owe, and they'd rather have you making regular payments than continue aggressive collection actions that might force you into bankruptcy.However, you must stay current with your payment plan and all future tax obligations. Missing payments or falling behind on new tax returns can cause the IRS to resume collection actions. This is why it's crucial to set up realistic payment amounts you can actually maintain long-term.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 Cresco, PA