Question 1

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

Accepted Answer

You must owe $50,000 or less in tax debt to qualify for streamlined installment agreements. If you owe more, you may still qualify by making a partial payment to reduce the balance. You need to demonstrate economic hardship - proving that paying your tax debt in full would cause significant financial strain. The IRS requires financial records including income, expenses, and asset documentation. You also must be current on all tax filings and have a reasonable payment history. The good news? Many people who think they don't qualify actually do. Each situation is unique, and there are often multiple pathways to resolution even if you don't meet the standard criteria.

Question 2

What's the difference between an installment agreement and offer in compromise?

Accepted Answer

An installment agreement is a payment plan where you pay an agreed-upon amount monthly until the debt is paid in full. You pay the entire amount you owe, just over time. The downside is the IRS continues applying interest, so you'll end up paying more than originally owed. An offer in compromise lets you settle your tax debt for less than you owe. Instead of paying $30,000, you might settle for $8,000. It's much harder to qualify for, but the savings can be substantial if approved. Most people start with installment agreements because they're easier to get approved. If your financial situation is severe enough, we'll pursue an offer in compromise to get you maximum relief.

Question 3

How long does the Fresh Start Program application process take?

Accepted Answer

Your offer is automatically accepted if the IRS doesn't make a determination within two years of receipt. But most cases resolve much faster than that. Streamlined installment agreements often get approved within 30-60 days if your paperwork is complete and accurate. Offers in compromise take longer - typically 6-12 months because the IRS does a thorough financial investigation. The IRS suspends other collection activities while your application is being processed. That means no more threatening letters, no wage garnishments, no bank levies. You get breathing room while we work on your permanent solution.

Question 4

Will the Fresh Start Program hurt my credit score?

Accepted Answer

Enrolling in a tax relief program does not hurt your credit score. The IRS doesn't report payment plans or settlements to credit bureaus the way credit card companies do. However, if the IRS has already filed a tax lien against you, that will appear on your credit report until it's resolved. The good news is the Fresh Start Program raised the threshold - the IRS generally won't file liens under $10,000. Once you complete your payment plan or settlement, any existing liens get released. Your credit score often improves because you've eliminated a major financial stress and demonstrated you can handle your obligations responsibly.

Question 5

What happens if I can't make my installment agreement payments?

Accepted Answer

Life happens. Job loss, medical emergencies, family crises - we understand that circumstances change. The key is communicating with the IRS before you miss payments, not after. If you contact them proactively, they'll often modify your agreement with lower monthly payments. Partial Pay Installment Agreements are for taxpayers who can make some payments but cannot pay their full tax debt before the collection statute expires. If you just stop paying without communication, the IRS will default your agreement and restart collection activities. That's when wage garnishments and bank levies become real threats again. We help you avoid this by staying on top of your case and handling any modifications needed.

Question 6

Should I try to handle the Fresh Start Program 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? Not all taxpayers qualify for offers in compromise, and the difference between those that qualify and those that don't is often the quality of the offer submitted. The IRS has voluminous rules, and if you don't meet requirements, your offer will be summarily rejected. While installment agreements are valid forms of Fresh Start tax relief, compromising with the IRS for reasonable monthly payments is difficult. Your chances of smaller payments are more likely if you use a professional tax relief company. We know exactly what the IRS looks for and how to present your case for maximum advantage.

IRS Fresh Start Program Dalton, PA