Question 1

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

Accepted Answer

You likely qualify if you owe back taxes and can demonstrate financial hardship or inability to pay the full amount. The IRS considers your income, necessary living expenses, asset equity, and ability to pay when evaluating Fresh Start applications. For Offers in Compromise, the IRS uses a specific formula comparing what they could collect from you over time versus your settlement offer. Most taxpayers who haven't filed returns in recent years or who've experienced job loss, medical emergencies, or business failures have strong qualification potential. The key is proper documentation and presenting your case correctly. During our free consultation, we review your specific situation and tell you exactly which programs you qualify for and what kind of resolution to expect.

Question 2

Can the IRS Fresh Start Program really reduce my tax debt by 90%?

Accepted Answer

Yes, but only through the Offer in Compromise program, and only if you meet strict financial criteria. The IRS accepts offers when they determine it's unlikely they'll collect the full amount owed, or when collection would create economic hardship. Your offer amount is based on your reasonable collection potential—essentially what the IRS could realistically collect from your income and assets over time. If you have limited income, high necessary expenses, and little equity in assets, your offer could be significantly less than your total debt. However, not everyone qualifies for such dramatic reductions. Many taxpayers benefit more from installment agreements or penalty abatement. We evaluate your complete financial picture to determine which approach offers the best outcome for your specific situation.

Question 3

What happens if the IRS rejects my Fresh Start application?

Accepted Answer

IRS rejections usually happen because of incomplete documentation, mathematical errors, or unrealistic offers. When we handle your case, we significantly reduce rejection risk by ensuring all paperwork is complete and accurate before submission. If the IRS does reject an initial application, you have appeal rights and can often resubmit with additional documentation or modified terms. Sometimes rejection simply means you need to provide more financial information or wait until your circumstances change. The worst outcome is usually returning to your original payment status, but you're not worse off than before applying. Meanwhile, the application process often stops or slows IRS collection actions, giving you breathing room to explore other options or improve your financial position.

Question 4

How long does the IRS Fresh Start Program process take?

Accepted Answer

Simple installment agreements can be approved within 30-60 days, especially for amounts under $50,000 using streamlined procedures. Offers in Compromise typically take 6-12 months due to extensive IRS review requirements and potential back-and-forth negotiations. Penalty abatement requests usually resolve within 2-4 months, while Currently-Not-Collectible status can be granted relatively quickly once proper documentation is submitted. Lien withdrawals happen after you've met payment requirements under your agreement. The timeline depends heavily on IRS workload, completeness of your application, and complexity of your case. We expedite the process by submitting complete, accurate applications initially and responding quickly to any IRS requests for additional information.

Question 5

Will applying for the Fresh Start Program stop IRS collection actions?

Accepted Answer

Yes, in most cases. When you submit a properly prepared Fresh Start application, the IRS typically suspends levy and garnishment actions while reviewing your request. This gives you immediate breathing room from aggressive collection tactics. However, the IRS may continue filing liens and assessing penalties during the review period. Interest also continues accruing on your outstanding balance until a resolution is reached. The key is submitting complete applications that meet IRS procedural requirements. If you're facing imminent levy action, we can often get Collection Due Process hearings or emergency stays while preparing your Fresh Start application. The goal is stopping harmful collection actions quickly while working toward permanent resolution.

Question 6

Should I try handling the Fresh Start Program myself?

Accepted Answer

You can apply directly to the IRS, but success rates are significantly lower without professional representation. The IRS receives thousands of applications with missing documentation, unrealistic offers, or strategic errors that lead to automatic rejections. Tax professionals understand IRS procedures, know what documentation is required, and can present your case in the most favorable light. We also handle all IRS communication, which eliminates stressful phone calls and prevent you from accidentally saying something that hurts 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? The cost of professional representation is typically far less than the money saved through proper Fresh Start Program application and negotiation.

IRS Fresh Start Program Forest Lake Park, PA