Question 1

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

Accepted Answer

You might qualify if you owe $50,000 or less in taxes, penalties, and interest, and you're current on all required tax filings. The program also requires that you can demonstrate financial hardship or inability to pay the debt in full without creating economic strain. Self-employed individuals may qualify if they show a drop of 25% or more in income. The key is proving to the IRS that you genuinely can't pay the full amount without creating serious financial hardship for you and your family. We evaluate your specific situation during our free consultation to determine which Fresh Start options make sense for your circumstances.

Question 2

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

Accepted Answer

An installment agreement lets you pay your full tax debt over time in monthly payments—up to 72 months for debts under $50,000. You'll still pay the full amount you owe, but in manageable chunks that fit your budget. An offer in compromise is different—it actually reduces the total amount you owe. If approved, you can settle your tax debt for less than the full amount, sometimes significantly less. However, you must prove to the IRS that you'll never be able to pay the full debt. Both options stop IRS collection actions like wage garnishments and bank levies once you're accepted into the program. We help you determine which option gives you the best outcome based on your financial situation.

Question 3

How long does the Fresh Start Program application process take?

Accepted Answer

Installment agreements typically get approved within a few weeks if you meet the streamlined criteria. The IRS has made this process much faster for taxpayers who owe under $50,000 and can pay within 72 months. Offers in compromise take longer—usually 6 to 12 months for the IRS to review and respond. During this time, the IRS suspends most collection activities, giving you breathing room while they evaluate your case. The key is getting your application submitted correctly the first time. Missing documentation or errors can delay the process significantly, which is why having professional representation makes such a difference in getting faster results.

Question 4

Will the Fresh Start Program stop the IRS from garnishing my wages?

Accepted Answer

Yes, once you're accepted into most Fresh Start Program options, the IRS will stop wage garnishments, bank levies, and other collection actions. This happens because you've entered into an agreement to resolve your debt. If you're already facing a garnishment, we can often get it released quickly once we submit your application for the appropriate program. The IRS recognizes that garnishing your wages makes it harder for you to make the payments you've agreed to. However, you must stay current on your agreement payments and file all future tax returns on time. If you default on the agreement, the IRS can resume collection actions.

Question 5

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

Accepted Answer

You must be current on all required tax filings before the IRS will consider your Fresh Start application. This means filing any missing tax returns first, even if you can't pay what you owe on those returns. We help clients get caught up on unfiled returns as part of our service. Often, you might not owe as much as you think once we prepare the returns properly and apply all deductions and credits you're entitled to. The IRS won't negotiate with taxpayers who aren't in compliance with filing requirements. But once you're current, you can immediately apply for the Fresh Start Program to address the debt from all your tax years at once.

Question 6

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

Accepted Answer

If your application gets rejected, you have the right to appeal the decision within 30 days. We can help you understand exactly why it was rejected and address those issues in your appeal. Sometimes rejections happen because of missing documentation or because the IRS needs more information about your financial situation. Other times, you might need to consider a different Fresh Start option that better fits your circumstances. Even if one program doesn't work, there are usually other options available. We might pursue penalty abatement, currently not collectible status, or negotiate a different type of payment arrangement that works for both you and the IRS.

IRS Fresh Start Program Dimock, PA