Question 1

What is the IRS Fresh Start Program and am I eligible?

Accepted Answer

The IRS Fresh Start Program used to be called the offer in compromise program, but it's actually a collection of IRS policy changes that make tax relief more accessible. The program focuses on taxpayers owing $50,000 or less in combined tax, penalties, and interest.

To qualify, you need to be current with all required tax filings and demonstrate financial hardship or inability to pay the full amount owed. You must be compliant and current with your tax filings, which means you should have filed all required tax returns for the years you owe taxes.

The program includes several relief options: offers in compromise to settle for less than you owe, installment agreements for manageable monthly payments, penalty abatement, and currently not collectible status if you truly cannot pay anything.

Question 2

How much can the Fresh Start Program reduce my tax debt?

Accepted Answer

The reduction depends on your specific financial situation and which relief option you qualify for. The Fresh Start Program shortened the multipliers used to calculate offers in compromise from 48-60 months to 12-24 months, thereby reducing the amount that a taxpayer would have to offer.

For offers in compromise, the IRS looks at your reasonable collection potential—what they could realistically collect from you over time. If you can demonstrate that you'll never be able to pay the full amount, they may accept significantly less.

Installment agreements don't reduce the total debt but make it manageable through monthly payments. The Fresh Start Program increased the streamlined installment agreement threshold from $10,000 to $25,000 for small businesses, making it easier to set up payment plans.

Question 3

Will the IRS put a lien on my property in Dyberry?

Accepted Answer

Under the Fresh Start program, the IRS generally won't file a tax lien unless you owe more than $10,000, up from the previous threshold of $5,000. This change protects more taxpayers from having liens filed against their property.

However, if you do owe more than $10,000, the IRS can still file a lien. The good news is that the Fresh Start program increased the threshold for when the IRS issues tax liens, and as of 2025, the agency generally only issues federal tax liens if you owe $10,000 or more.

If a lien has already been filed, we can often negotiate a lien withdrawal once your balance falls below $25,000 or you enter into a qualifying payment agreement. The key is addressing your tax debt before it reaches the lien threshold.

Question 4

How long does the Fresh Start Program process take?

Accepted Answer

The changes may help taxpayers resolve their debt in as little as two years compared to up to five years in the past. The exact timeline depends on which relief option you pursue and how complex your case is.

Streamlined installment agreements can often be set up within 30-60 days. These are available if you owe less than $50,000 and can pay the debt within 72 months. The application process is simplified, and approval is usually quick.

Offers in compromise take longer—typically 6-12 months for the IRS to review and make a decision. Your offer is automatically accepted if the IRS doesn't make a determination within two years of the IRS receipt date. The key is submitting a complete, well-documented application from the start.

Question 5

Should I try to handle Fresh Start Program applications myself?

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? The application process can be complex and challenging to navigate. Therefore, consider engaging with a tax professional. Our expertise and guidance can prove invaluable.

The IRS rejection rate for self-prepared offers in compromise is extremely high—often over 60%. Professional representation significantly improves your chances of acceptance because we know exactly what documentation the IRS requires and how to present your case.

We also handle all communication with the IRS during the process, which means you're protected from collection actions while your case is being reviewed. The IRS generally approves an offer in compromise when the amount you offer represents the most they can expect to collect within a reasonable period of time—and we know how to calculate and present that amount properly.

Question 6

What does tax resolution service cost in Wayne County?

Accepted Answer

Tax relief services cost $3,500 to $5,500, but a lot of cases fall above or below that range. The exact cost depends on the complexity of your case and which services you need. Simple installment agreement setups cost less than complex offers in compromise.

We provide transparent pricing upfront during your consultation. Should you engage our services, we will credit you 100% of your consultation fee to the resolution work provided. This means your consultation investment goes toward resolving your tax problem.

Consider the alternative: the IRS adds penalties and interest every month you don't address your tax debt. Professional representation often saves you more money than it costs by getting you the best possible settlement and stopping the accumulation of additional penalties and interest.

IRS Fresh Start Program Dyberry, PA