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 total tax debt and can demonstrate financial hardship or inability to pay the full amount. You must also be current on all required tax filings—if you have unfiled returns, those need to be submitted first. The IRS looks at your monthly income, necessary expenses, and asset equity to determine what you can realistically afford to pay. Self-employed individuals who've experienced a 25% or greater drop in income often qualify for additional relief options. Every situation is different, which is why we provide a thorough case evaluation before recommending any specific Fresh Start option.

Question 2

What's the difference between an installment agreement and Offer in Compromise?

Accepted Answer

An installment agreement lets you pay your full tax debt over time in monthly payments. You'll still owe the entire amount, but you avoid immediate collection actions like levies and liens. An Offer in Compromise actually reduces the total amount you owe. Instead of paying $30,000, you might settle for $5,000 or less. However, the IRS has strict qualification requirements and you must prove you can't pay the full amount. Most taxpayers start with installment agreements because they're easier to qualify for. If your financial situation is severe enough, we'll pursue an Offer in Compromise to get maximum debt reduction.

Question 3

How long does the Fresh Start Program process take?

Accepted Answer

Simple installment agreements can often be approved within 30-60 days. More complex cases involving Offers in Compromise typically take 6-12 months for the IRS to process and make a determination. The timeline depends on several factors: how quickly you provide required documentation, whether the IRS requests additional information, and which specific Fresh Start option you're pursuing. During this time, IRS collection activities are generally suspended. You won't receive threatening letters or face immediate levy actions while your case is being reviewed.

Question 4

Can the Fresh Start Program help with Pennsylvania state taxes too?

Accepted Answer

The Fresh Start Program specifically applies to federal tax debt owed to the IRS. However, Pennsylvania has its own tax relief programs, including Tax Forgiveness for low-income residents and payment plans through the Department of Revenue. We help clients with both federal and state tax problems. Pennsylvania's rules are different—they have no statute of limitations on tax collection and their payment plan requirements are stricter than federal options. Often, resolving your federal tax debt first gives you more resources to address state tax issues. We can coordinate both processes to get you the best overall outcome.

Question 5

What happens if my Fresh Start application is rejected?

Accepted Answer

If your initial application is rejected, you have appeal rights. We can request reconsideration by providing additional documentation or presenting your case to a different IRS department. Sometimes rejection happens because of missing paperwork or incorrect financial calculations. We review the rejection letter carefully and address each specific concern the IRS raised. In many cases, we can modify your application or pursue a different Fresh Start option that better fits your situation. Very few cases are completely hopeless—there's usually a path forward even after an initial rejection.

Question 6

How much does tax resolution help cost in El-Do Lake?

Accepted Answer

Our fees depend on the complexity of your case and which Fresh Start options we pursue. Simple installment agreements cost less than complex Offer in Compromise negotiations. We provide upfront pricing after reviewing your situation. There are no hidden fees or surprise charges. If you engage our services, we credit 100% of your consultation fee toward the resolution work. Most clients find our fees are a fraction of what they save through debt reduction and penalty abatement. When we can reduce a $40,000 tax debt to $8,000, our fees pay for themselves many times over.

IRS Fresh Start Program El-Do Lake, PA