Question 1

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

Accepted Answer

You may qualify if you owe $50,000 or less in combined tax, penalties, and interest, or if you can demonstrate financial hardship regardless of the amount owed. The program targets taxpayers who are current on filing requirements and haven't had recent compliance violations. We evaluate your eligibility during a free consultation, reviewing your income, expenses, assets, and payment history to determine which Fresh Start options apply. Even if you don't initially qualify, we can often help you become eligible by addressing filing deficiencies or other compliance issues first. Time is critical—some Fresh Start benefits have deadlines, and the longer you wait, the more penalties and interest accumulate. Getting professional evaluation quickly protects your options and stops the debt from growing larger.

Question 2

Can the Fresh Start Program really eliminate 90% of my tax debt?

Accepted Answer

Yes, but only through the Offer in Compromise program, and you must meet strict eligibility criteria. The IRS accepts offers when collection of the full amount is unlikely or when paying would create economic hardship for the taxpayer. Your settlement amount is calculated based on your ability to pay, not what you owe. The IRS considers current income, necessary expenses, asset values, and future earning potential. Unemployed individuals, those with significant medical expenses, or taxpayers facing other financial hardships often qualify for dramatically reduced settlements. However, the IRS rejects about 60% of Offer in Compromise applications, usually due to incomplete documentation or unrealistic offer amounts. Professional preparation by our team significantly improves acceptance rates by ensuring proper documentation and realistic settlement calculations.

Question 3

What happens to wage garnishments and bank levies during the process?

Accepted Answer

Once we begin representing you, we can often secure release of existing levies and prevent new collection actions while negotiating your Fresh Start Program resolution. The IRS typically suspends aggressive collection activities when taxpayers are actively pursuing legitimate resolution options. If you currently have wage garnishments or bank account levies, we work immediately to get these released. For installment agreements, the IRS usually releases levies once your payment plan receives approval. During Offer in Compromise evaluations, collection actions typically stop throughout the review period. The key is securing professional representation before the IRS escalates to asset seizure. Once we file proper representation paperwork, we become your official advocate, and the IRS must communicate through us rather than contacting you directly.

Question 4

How long does the Fresh Start Program resolution process take?

Accepted Answer

Streamlined Installment Agreements for amounts under $50,000 often receive approval within 30-60 days if you meet the simplified criteria. These cases move quickly because the IRS has streamlined application processes for qualifying taxpayers. Offer in Compromise cases require more time—typically 6-12 months from submission to final IRS decision. The agency must thoroughly evaluate your financial situation and may request additional documentation during review. Collection activities usually cease during this evaluation period, providing immediate relief. Currently Not Collectible status can be granted relatively quickly when you clearly demonstrate financial hardship—often within 30-90 days. Timeline depends on how quickly you provide required financial documentation and the complexity of your specific tax situation.

Question 5

Will participating in the Fresh Start Program hurt my credit score?

Accepted Answer

The Fresh Start Program typically improves credit scores over time by resolving tax liens and stopping destructive collection activities. Tax liens severely damage credit ratings, but the program includes provisions for lien withdrawal once balances drop below $25,000 or you enter qualifying payment agreements. The IRS may file new liens during resolution if your debt is substantial, but successfully completing any Fresh Start program demonstrates financial responsibility to future creditors. Most clients see credit improvements within 6-12 months of resolving their tax issues. Removing tax liens can boost credit scores by 100+ points or more. Eliminating the constant stress of potential IRS collection actions also helps you focus on rebuilding overall financial health and establishing positive credit patterns moving forward.

Question 6

Should I try handling the Fresh Start Program application myself?

Accepted Answer

You can apply directly, but professional representation dramatically improves success rates and prevents costly mistakes. The IRS accepts only about 40% of self-prepared Offer in Compromise applications compared to 60-70% of professionally prepared cases. Tax professionals understand IRS procedures, know exactly which documentation is required, and negotiate more effectively on your behalf. We also protect you from inadvertently saying something during IRS interviews that could damage your case. Would you go to court without a lawyer? Of course not! Then why would you go before the IRS without a trusted tax professional? Professional representation costs are often offset by better resolution terms and avoiding mistakes that could cost thousands in additional penalties and interest. End the sleepless nights. Call 570-630-0201 or text 570-470-5228 to book your free consultation today. We accept Mastercard and Visa (4% convenience fee applies).

IRS Fresh Start Program Edella, PA