Question 1

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

Accepted Answer

The reduction depends on your specific financial situation and which program option you qualify for. Offers in Compromise can eliminate 90% or more of your debt if the IRS accepts your offer based on your ability to pay. Penalty abatement can remove substantial penalty charges, sometimes reducing your balance by thousands of dollars. Installment agreements don't reduce the principal amount but stop additional penalties and interest from accruing while you pay. The key is having a tax professional evaluate your case properly. We'll calculate your reasonable collection potential and determine which approach gives you the most relief.

Question 2

What happens if I try to handle the Fresh Start Program myself?

Accepted Answer

You can apply for Fresh Start Program benefits yourself, but the process is complex and mistakes are costly. The IRS receives thousands of applications, and they're not incentivized to approve yours or find the best option for your situation. Without professional help, you might miss deadlines, submit incomplete documentation, or choose the wrong relief option entirely. A rejected Offer in Compromise, for example, means you still owe the full amount plus any additional penalties that accrued during the process. Tax professionals know how to present your case in the best light, which documentation the IRS requires, and how to navigate their internal procedures. Would you go to court without a lawyer? Of course not. Then why would you go before the IRS without a trusted tax professional?

Question 3

How long does the IRS Fresh Start Program application process take?

Accepted Answer

Timeline varies by program type and case complexity. Streamlined installment agreements for debts under $50,000 can be approved within 30 days if all documentation is complete and accurate. Offers in Compromise take longer, typically 6-12 months for the IRS to review and make a decision. During this time, collection activities generally stop, giving you breathing room while your case is pending. Penalty abatement requests usually process within 60-90 days. Currently-Not-Collectible status can be approved quickly if you meet the hardship criteria and provide proper financial documentation.

Question 4

What financial information does the IRS require for Fresh Start Program applications?

Accepted Answer

The IRS requires complete financial disclosure for most Fresh Start Program options. This includes recent pay stubs, bank statements, asset valuations, and monthly expense documentation. For Offers in Compromise, you'll need detailed information about your income, assets, and necessary living expenses. The IRS uses this to calculate your reasonable collection potential—essentially what they think you can afford to pay. Installment agreements require income verification and basic expense information. The more you owe, the more documentation they require. Having a tax professional prepare these submissions ensures nothing is missed and everything is presented properly.

Question 5

Can I still qualify 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 Program benefits. This means filing any missing returns before your application can be processed. The good news is that filing those returns often reveals refunds or lower balances than you expected, especially if you had taxes withheld from paychecks or made estimated payments. Sometimes the fear of what you might owe is worse than the reality. All County Tax Resolution can prepare and file your missing returns as part of the Fresh Start Program process. We'll ensure everything is filed correctly and on time, then immediately move forward with your relief application.

Question 6

What payment options are available for tax resolution services?

Accepted Answer

All County Tax Resolution accepts multiple payment methods including cash, check, and credit cards. Mastercard and Visa are accepted with a 4% convenience fee for processing. Payment plans are available for tax resolution services, allowing you to get professional help even while dealing with financial difficulties. The goal is removing barriers so you can get the help you need. You can reach us at 570-630-0201 for phone consultations or text 570-470-5228. Online booking is also available for your convenience. Remember, the initial consultation is free with no obligation to proceed.

IRS Fresh Start Program East Lenox, PA