Question 1

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

Accepted Answer

The reduction depends on your financial situation and which program you qualify for. Through an Offer in Compromise, eligible taxpayers can reduce their debt by 90% or more. For example, if you owe $50,000 but can only afford $5,000 based on your income and expenses, the IRS may accept that lower amount as payment in full.

Installment Agreements don't reduce the principal amount but stop penalties and make payments affordable. Penalty Abatement can eliminate thousands in additional fees. The exact savings vary by case, but our clients typically see significant reductions in what they ultimately pay.

Question 2

Do I qualify for the Fresh Start Program if I owe more than $50,000?

Accepted Answer

Yes, you can still get relief even if you owe more than $50,000. The $50,000 limit applies to streamlined installment agreements, which require minimal financial disclosure. If you owe more, you'll need to provide detailed financial information, but you can still qualify for payment plans, Offers in Compromise, or other relief options.

For debts over $50,000, the IRS looks more closely at your ability to pay, but that often works in your favor. If you truly can't afford the full amount, higher debt levels actually strengthen your case for an Offer in Compromise or Currently Not Collectible status.

Question 3

Will the Fresh Start Program stop IRS wage garnishments and bank levies?

Accepted Answer

Yes, entering into any Fresh Start Program option immediately stops most IRS collection actions, including wage garnishments and bank levies. Once we submit your application for an installment agreement, Offer in Compromise, or other relief option, the IRS must halt collection activities while they review your case.

This protection continues as long as you comply with the terms of your agreement. If you're approved for a payment plan, garnishments won't resume as long as you make your monthly payments. For Offers in Compromise, collection stops during the entire negotiation process, which can take several months.

Question 4

How long does it take to get approved for Fresh Start Program relief?

Accepted Answer

The timeline varies by program type. Streamlined installment agreements for debts under $50,000 are often approved within 30-60 days. Standard installment agreements requiring financial disclosure take 90-120 days. Currently Not Collectible determinations usually process within 60-90 days.

Offers in Compromise take the longest, typically 6-12 months for a final decision. However, collection actions stop immediately when we submit your application, so you get relief from garnishments and levies right away. We track your case throughout the process and keep you updated on progress.

Question 5

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

Accepted Answer

Rejection isn't the end of the road. We can appeal the decision, provide additional documentation, or pursue alternative relief options. Often, rejections happen because of missing paperwork or insufficient financial information, which we can correct and resubmit.

If one program doesn't work, we explore others. For example, if an Offer in Compromise is rejected, you might still qualify for an installment agreement or Currently Not Collectible status. We don't give up until we find a solution that works for your situation.

Question 6

Can I apply for the Fresh Start Program myself without hiring a professional?

Accepted Answer

Technically yes, but it's like representing yourself in court—possible but risky. The IRS processes thousands of applications, and they're not motivated to find reasons to approve yours. They often reject applications for minor paperwork errors or inadequate financial documentation.

Tax professionals know exactly what the IRS wants to see and how to present your case for the best outcome. We understand which programs you're most likely to qualify for and how to structure your application to maximize debt reduction. The cost of professional representation is typically far less than the money we save you through better negotiated settlements.

IRS Fresh Start Program East Benton, PA