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 program you qualify for. Offers in Compromise can reduce debt by 90% or more for taxpayers who truly cannot pay the full amount. This requires proving you lack assets and income to pay over the collection period.Penalty abatement can eliminate 25-40% of your total debt since penalties often make up a large portion of what you owe. Currently-Not-Collectible status doesn't reduce the debt but stops collection activities and penalty accumulation.The key is qualifying financially. The IRS uses strict formulas based on your income, expenses, and assets. We analyze your situation during the free consultation to determine realistic expectations.

Question 2

What's the difference between legitimate tax relief and the scams I see advertised?

Accepted Answer

Legitimate tax relief companies never guarantee specific outcomes or claim they can "eliminate all your tax debt for pennies." They don't charge large upfront fees before doing any work or pressure you to sign immediately.Real tax professionals evaluate your specific financial situation first. They explain exactly which programs you qualify for and provide realistic timelines. They're licensed, bonded, and have verifiable experience with IRS procedures.Scam companies use high-pressure sales tactics, make unrealistic promises, and often disappear after collecting fees. Always verify credentials and get everything in writing. If it sounds too good to be true, it probably is.

Question 3

Do I need to file all my back tax returns before applying for Fresh Start programs?

Accepted Answer

Yes, you must be current on all required filings before the IRS will consider any payment arrangements or debt reduction programs. This is non-negotiable - they won't negotiate with taxpayers who aren't compliant.We handle the preparation and filing of all missing returns as part of our service. This often reveals refunds that can be applied to your debt or identifies years where you actually don't owe anything.Filing back returns also stops the IRS from filing substitute returns on your behalf, which almost always result in higher tax amounts since they don't include deductions you're entitled to claim.

Question 4

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

Accepted Answer

Simple installment agreements can be approved within 30-60 days. Offers in Compromise take 6-12 months on average, sometimes longer for complex cases. Currently-Not-Collectible determinations usually process within 60-90 days.The timeline depends heavily on how quickly we can gather required financial documentation and whether the IRS requests additional information. Complete, accurate initial submissions move faster than incomplete ones.During the application process, collection activities typically stop. This gives you breathing room while we negotiate your case. We provide regular updates so you know exactly where things stand.

Question 5

What happens if my Fresh Start application gets rejected by the IRS?

Accepted Answer

Rejections often happen because of incomplete financial information or applying for the wrong program. We review the rejection letter to understand exactly why it was denied and determine if we can address those issues.You have appeal rights for most rejections. We can request reconsideration with additional documentation or appeal to the IRS Independent Office of Appeals. Sometimes a different Fresh Start program makes more sense after seeing the IRS response.If no Fresh Start programs work, we explore other options like partial payment installment agreements or negotiating penalty abatement separately. There's usually more than one path to resolution.

Question 6

Will working with a tax resolution company hurt my credit score?

Accepted Answer

Working with a tax resolution company doesn't directly affect your credit. However, the underlying tax debt might already be impacting your credit through federal tax liens, which are public records.One benefit of Fresh Start programs is lien withdrawal once balances fall below $25,000. This removes the public lien record, which can improve your credit score. Installment agreements also prevent new liens from being filed.The sooner you address tax debt, the less likely it is to create credit problems. Ignoring IRS notices leads to liens, levies, and other collection actions that definitely hurt your credit and financial standing.

IRS Fresh Start Program Elmdale, PA