Question 1

How much can I actually save with the IRS Fresh Start Program?

Accepted Answer

Many taxpayers reduce their tax debt by 70-90% through Fresh Start relief, though your exact savings depend on your financial circumstances. Offers in Compromise can settle debts for as little as 10-20% of the original amount when you demonstrate genuine inability to pay.The key is proving that paying the full amount would create economic hardship. We analyze your income, necessary living expenses, and asset equity to calculate the absolute minimum the IRS will accept. For Darbytown residents facing real financial struggles, the savings are often dramatic.The IRS would rather collect something than spend years trying to collect the full amount from someone who can't pay. This reality works in your favor when you present a properly documented case for reduced settlement.

Question 2

What if I owe the IRS more than $50,000?

Accepted Answer

You can still get Fresh Start relief even with tax debts exceeding $50,000. The $50,000 limit applies only to streamlined installment agreements—other relief options have no upper debt limits and can handle six-figure tax problems.For larger debts, you'll need more detailed financial documentation, but Offers in Compromise and hardship programs remain available. We've successfully resolved tax debts over $100,000 through proper negotiation and documentation of financial circumstances.Higher debt amounts actually increase your potential savings. A 90% reduction on $75,000 saves you $67,500—making the extra documentation requirements worthwhile. The process takes longer, but the financial relief can be life-changing.

Question 3

How quickly can the Fresh Start Program stop IRS collection actions?

Accepted Answer

We can often halt IRS collection activities within 24-48 hours by filing protective paperwork and demonstrating economic hardship. Once you enter the Fresh Start application process, the IRS must suspend wage garnishments, bank levies, and asset seizures while reviewing your case.For emergency situations involving active garnishments or imminent bank seizures, we prioritize immediate relief filings. Currently Not Collectible status can stop all collection activities instantly while we prepare your comprehensive Fresh Start application.The protection lasts throughout the application process, which typically takes 6-12 months. This breathing room alone makes starting the process worthwhile—every day of continued garnishment costs you money that could stay in your pocket.

Question 4

Does the Fresh Start Program work for self-employed taxpayers?

Accepted Answer

Self-employed individuals often have excellent chances for Fresh Start approval, especially if you've experienced a 25% or greater income decline. The IRS recognizes that business owners face unique financial challenges and often qualify for special hardship consideration.Darbytown business owners dealing with economic downturns, seasonal fluctuations, or industry-specific challenges can use these factors to strengthen their Fresh Start applications. We know how to document business hardship in compelling ways that IRS reviewers find convincing.Self-employed taxpayers also have more complex financial situations with higher business expenses and variable income. These factors often result in lower settlement amounts or more favorable payment terms than what wage earners typically receive.

Question 5

What happens if the IRS rejects my Fresh Start application?

Accepted Answer

IRS rejections aren't final decisions—they're usually fixable with additional documentation or revised proposals. We carefully analyze rejection letters to understand exactly what the IRS needs and resubmit with stronger supporting evidence.Most rejections happen due to incomplete financial information or unrealistic settlement offers. With our experience handling thousands of cases, we know how to address these deficiencies and resubmit applications that get approved on the second attempt.If one Fresh Start option doesn't work, we explore alternatives immediately. Someone who doesn't qualify for an Offer in Compromise might still get affordable installment agreements or penalty abatement. There's almost always a viable path to tax relief.

Question 6

Can I apply for the Fresh Start Program if I haven't filed recent tax returns?

Accepted Answer

You must be current on all required tax filings to qualify for most Fresh Start relief options. However, we can prepare and file your missing returns as part of the overall tax resolution process, then immediately apply for Fresh Start relief.Getting current on filings is often easier than you think, especially if you're entitled to refunds on some years. We can often offset taxes owed with refunds due, reducing your overall debt before even applying for Fresh Start relief.The IRS views filing compliance as evidence of good faith, which strengthens your Fresh Start application. We handle the entire process—preparing missing returns, calculating your true debt amount, then negotiating the best possible settlement or payment plan.

IRS Fresh Start Program Darbytown, PA