Question 1

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

Accepted Answer

The reduction depends on your financial situation and which Fresh Start option you qualify for. Offers in Compromise can reduce debt by 90% or more - some clients settle $50,000 debts for $5,000 or less. Penalty abatement typically removes 25-40% of what you owe since penalties compound monthly. Installment agreements don't reduce the principal but stop additional penalties and give you manageable payments. The key is qualifying correctly. The IRS has strict income and asset limits for each program. We analyze your entire financial picture to determine which option gives you the biggest legitimate reduction.

Question 2

What are the income limits for IRS Fresh Start Program eligibility?

Accepted Answer

For streamlined installment agreements, you can owe up to $50,000 and don't need to provide detailed financial statements if you agree to pay within 72 months. There's no specific income limit, but payments must fit your budget. Offers in Compromise have stricter requirements. Generally, your reasonable collection potential must be less than what you owe. The IRS calculates this using your income, expenses, and asset values. Currently Not Collectible status requires showing that paying anything would prevent you from meeting basic living expenses. The IRS uses national and local expense standards to determine what's reasonable for your area.

Question 3

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

Accepted Answer

Streamlined installment agreements typically process within 30-60 days once submitted correctly. These are the fastest option if you qualify and can afford the payments. Offers in Compromise take 6-12 months on average. The IRS has specific timeframes to respond, but they often request additional documentation that can extend the process. Penalty abatement requests usually resolve within 2-4 months. Currently Not Collectible determinations can take 30-90 days depending on your documentation. Having professional representation speeds up every process because we know exactly what the IRS needs and submit complete packages the first time.

Question 4

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

Accepted Answer

You must be current on all required tax filings before the IRS will consider most Fresh Start options. This is called "compliance" and it's non-negotiable. We help clients get caught up on unfiled returns first. Often, filing missing returns actually reduces what you owe because you might have refunds or lower income than the IRS estimated. Once you're compliant, all Fresh Start options become available. The IRS wants to see you're serious about staying current going forward. Filing missing returns demonstrates good faith and often improves your negotiating position significantly.

Question 5

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

Accepted Answer

Rejections usually happen because of incomplete documentation or choosing the wrong program for your situation. The good news is you can reapply with additional information or try a different Fresh Start option. If an Offer in Compromise gets rejected, you might qualify for an installment agreement instead. If Currently Not Collectible status is denied, penalty abatement might still reduce your debt substantially. Professional representation dramatically reduces rejection rates because we know exactly what the IRS looks for in each program. We also handle appeals if necessary and can often get initial rejections overturned with the right approach.

Question 6

How much does professional help with the Fresh Start Program cost?

Accepted Answer

Our fees depend on your case complexity and which Fresh Start options you pursue. We accept Mastercard and Visa with a 4% convenience fee, and we offer payment plans so you don't have to pay everything upfront. Most clients save far more through proper Fresh Start representation than they pay in professional fees. Getting a $30,000 debt reduced to $3,000 through an Offer in Compromise makes the investment obvious. We provide transparent pricing during your free consultation - no surprises or hidden costs. You'll know exactly what professional representation costs before making any commitment. Call 570-630-0201 or text 570-470-5228 to discuss your specific situation.

IRS Fresh Start Program Echo Lake, PA