Question 1

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

Accepted Answer

The amount depends on your financial situation and which program you qualify for. Some taxpayers see reductions of 90% or more through an Offer in Compromise, while others benefit from penalty abatement that can cut thousands off their total debt. Installment Agreements don't reduce the principal amount owed, but they can eliminate failure-to-pay penalties going forward and make your debt manageable with affordable monthly payments. Currently-Not-Collectible status doesn't reduce your debt, but it stops collection activities and penalties while you get back on your feet financially. The key is having your case properly evaluated and presented. The IRS looks at your ability to pay, not just what you owe. If your monthly expenses exceed your income, or if paying would prevent you from covering basic living expenses, you may qualify for significant debt reduction.

Question 2

What documents do I need to apply for the Fresh Start Program?

Accepted Answer

You'll need your tax returns for all years with outstanding debt, recent pay stubs, bank statements from the last three months, and a complete list of your monthly living expenses. If you're self-employed, bring profit and loss statements and business bank records. The IRS also wants to see documentation of any financial hardship you're experiencing—medical bills, divorce papers, job loss documentation, or other circumstances that affected your ability to pay. Asset information is important too, including real estate values, vehicle information, and retirement account balances. Don't worry if you don't have everything organized perfectly. Part of our service includes helping you gather and organize these documents properly. Missing or incomplete paperwork is one of the main reasons Fresh Start applications get rejected, so having professional help with this step is crucial.

Question 3

How long does the Fresh Start Program application process take?

Accepted Answer

Most cases are resolved within 30-90 days, but complex situations can take longer. Installment Agreements are typically the fastest—often approved within 2-4 weeks if you owe less than $50,000 and meet the streamlined criteria. Offers in Compromise take longer, usually 6-12 months, because the IRS conducts a thorough financial investigation. However, collection activities typically stop once your application is submitted, giving you immediate relief from wage garnishments and bank levies. The timeline also depends on how quickly you can provide required documentation and whether the IRS requests additional information. Having professional representation speeds up the process significantly because experienced tax professionals know exactly what the IRS wants to see and how to present your case for the fastest approval.

Question 4

Will the IRS stop trying to collect from me while my application is pending?

Accepted Answer

Yes, in most cases. Once you submit a complete Fresh Start Program application, the IRS typically suspends collection activities including wage garnishments, bank levies, and asset seizures. This gives you breathing room while they review your case. However, the protection isn't automatic—your application must be complete and properly submitted. If you're already facing imminent collection action like a wage garnishment, professional representation can often get these stopped immediately while your case is being prepared. It's important to understand that interest continues to accrue during this time, and if your application is rejected, collection activities can resume. That's why having your case properly prepared and presented the first time is so important. Most people who try to handle Fresh Start applications themselves make critical mistakes that lead to rejection.

Question 5

What happens if I don't qualify for the Fresh Start Program?

Accepted Answer

Even if you don't qualify for the main Fresh Start options, there are other ways to resolve your tax debt. You might qualify for a partial payment installment agreement, where you make monthly payments but don't pay the full amount owed before the collection statute expires. Innocent spouse relief can eliminate tax debt if your spouse or ex-spouse created the tax liability without your knowledge. Bankruptcy might discharge certain older tax debts if you meet specific criteria. Currently-Not-Collectible status can provide temporary relief even if you don't qualify for debt reduction. The key is having someone evaluate all your options, not just the Fresh Start Program. Many taxpayers have multiple paths to resolution, and an experienced tax professional can identify alternatives you might not know exist. Even in difficult cases, there's usually a way to stop the collection pressure and create a manageable solution.

Question 6

How much does it cost to get help with the Fresh Start Program?

Accepted Answer

All County Tax Resolution starts every case with a free consultation to evaluate your situation and explain your options. There's no obligation, and you'll get honest advice about what's realistic in your case. If you decide to move forward, fees depend on the complexity of your case and which services you need. Simple installment agreement cases cost less than complex Offers in Compromise that require extensive financial documentation and negotiation. Payment plans are available, and we accept Mastercard and Visa with a 4% convenience fee. The investment in professional representation typically pays for itself through the debt reduction achieved and the penalties avoided. Many people who try to handle Fresh Start applications themselves make costly mistakes that result in rejection and continued collection activities. Getting it right the first time with professional help is usually the most cost-effective approach.

IRS Fresh Start Program Freytown, PA