Question 1

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

Accepted Answer

You may qualify if you owe $50,000 or less in combined taxes, penalties, and interest, and you're current with all required tax filings. The program is designed for individuals and small businesses who are experiencing financial hardship and cannot pay their full tax debt. However, qualification depends on your specific financial situation, including your income, expenses, and assets. During our free consultation, we'll review your complete tax situation and determine which Fresh Start options give you the best outcome. The key is acting quickly - the longer you wait, the more penalties and interest accumulate, potentially pushing you over the $50,000 threshold for certain programs.

Question 2

Can the IRS Fresh Start Program really eliminate my tax debt completely?

Accepted Answer

Yes, through an offer in compromise, you may be able to settle your tax debt for significantly less than you owe - sometimes as little as 10-20% of the original amount. However, the IRS doesn't approve every offer in compromise application. The IRS will only accept an offer if they believe it's the most they can reasonably collect from you, or if collecting the full amount would cause economic hardship. This requires proving your financial situation through detailed documentation of income, expenses, and assets. That's why professional representation is crucial. We know exactly how to present your case to maximize your chances of approval, and we handle all negotiations with the IRS to secure the lowest possible settlement.

Question 3

What happens if I can't afford to pay anything right now?

Accepted Answer

If you're experiencing severe financial hardship, you may qualify for Currently Not Collectible (CNC) status. This temporarily stops all IRS collection actions, including wage garnishments, bank levies, and liens. While in CNC status, the IRS cannot seize your assets or garnish your wages, giving you breathing room to get back on your feet financially. However, your tax debt doesn't disappear - interest continues to accrue, and the IRS will periodically review your financial situation. CNC status is often used as a stepping stone while we work on a more permanent solution like an offer in compromise or installment agreement. The key is proving to the IRS that collection would cause you to be unable to meet basic living expenses.

Question 4

How long does the IRS Fresh Start Program process take?

Accepted Answer

The timeline varies depending on which program you qualify for and the complexity of your case. Installment agreements can often be approved within 30-60 days, while offers in compromise typically take 6-12 months for the IRS to review and approve. However, once we submit your application, IRS collection actions usually stop immediately. This means no more threatening letters, phone calls, or seizure of assets while your case is being processed. We'll keep you informed throughout the entire process and handle all communications with the IRS. Most clients tell us the relief they feel just knowing a professional is handling everything is worth it, even before their case is fully resolved.

Question 5

Will working with a tax professional really make a difference?

Accepted Answer

Absolutely. 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 is the most powerful collection agency in the world, and they have teams of experienced agents working against you. Professional representation levels the playing field. We know IRS procedures, deadlines, and negotiation tactics that can significantly improve your outcome. We also know how to present your financial information in the most favorable light possible. Studies show that taxpayers represented by professionals are far more likely to have their offers in compromise accepted and typically receive better settlement terms. The small investment in professional help often saves thousands in the long run.

Question 6

What if I haven't filed my tax returns in several years?

Accepted Answer

You must be current with all required tax filings to qualify for most IRS Fresh Start Program options. If you have unfiled returns, we'll help you get caught up as quickly as possible before pursuing debt relief. Filing missing returns is actually the first step in resolving your tax problems. Until you're compliant with filing requirements, the IRS won't negotiate payment plans or settlements. They need to know exactly how much you owe before they can work with you. We can prepare all missing returns and file them simultaneously, then immediately begin the Fresh Start application process. Many clients are relieved to discover they don't owe as much as they feared, and some even receive refunds that can be applied toward other tax debts.

IRS Fresh Start Program Deckertown, PA