Question 1

How much of my tax debt can the Fresh Start Program eliminate?

Accepted Answer

The amount varies based on your financial situation, but many clients see reductions of 70-90% or more. Some qualify for Offers in Compromise that settle their entire debt for as little as $100-500. Others get penalty abatements that cut 25-50% of their total debt immediately. The IRS looks at your ability to pay, not just what you owe. If you're struggling financially, they'd rather collect a smaller amount than nothing at all. Your income, expenses, assets, and family size all factor into what they'll accept. During your free consultation, we'll calculate realistic expectations based on your specific situation. No guessing, no false promises—just honest numbers based on current IRS guidelines.

Question 2

Do I qualify for the IRS Fresh Start Program?

Accepted Answer

Most people with tax debt qualify for some form of Fresh Start relief. The program expanded significantly in recent years to help more taxpayers. If you owe less than $50,000, you automatically qualify for streamlined installment agreements with minimal paperwork. For Offers in Compromise, the IRS looks at your monthly income minus allowable expenses. If there's little or nothing left over, you likely qualify for significant debt reduction. Currently-Not-Collectible status is available if you're unemployed, on disability, or facing other financial hardships. The only requirements are that you've filed all required tax returns and aren't currently in bankruptcy. Even if you've been rejected before, rule changes might make you eligible now.

Question 3

How long does the Fresh Start Program process take?

Accepted Answer

Simple installment agreements can be approved in 30-60 days. More complex cases like Offers in Compromise typically take 6-12 months, but collection activity stops once your application is submitted. The timeline depends on which relief option you pursue and how quickly you provide required documentation. Streamlined agreements move fastest because they require less IRS review. Currently-Not-Collectible status can often be granted within 30 days if you meet the financial criteria. Having professional representation speeds up the process significantly. We know exactly what documentation the IRS wants, how to present your case, and which agents to contact for faster processing.

Question 4

Will the IRS stop collection activities while my case is pending?

Accepted Answer

Yes, most collection activities stop once you're accepted into a Fresh Start Program or have a pending application. This includes wage garnishments, bank levies, and asset seizures. You'll also stop receiving collection notices and threatening letters. However, interest continues to accrue on your debt during the process. This is why it's important to act quickly rather than waiting for the problem to get worse. The sooner you start, the less interest you'll pay overall. If you're facing immediate collection action like wage garnishment, we can often get emergency relief within 24-48 hours by contacting the IRS directly and requesting a Collection Due Process hearing.

Question 5

What happens if my Offer in Compromise is rejected?

Accepted Answer

Rejection doesn't end your options. You can appeal the decision, submit a new offer with different terms, or pursue other Fresh Start relief like installment agreements or Currently-Not-Collectible status. Many offers are rejected on technicalities rather than merit. Missing documentation, calculation errors, or procedural mistakes can be fixed and resubmitted. An experienced tax professional knows how to address IRS objections and strengthen your case. Even if your offer is ultimately rejected, you've bought time and stopped collection activities during the review process. This gives you breathing room to explore other options and get your finances organized.

Question 6

Can I handle the Fresh Start Program application myself?

Accepted Answer

Technically yes, but it's not recommended. The IRS reports that less than 25% of self-prepared Offers in Compromise are accepted, compared to much higher success rates with professional representation. The application process is complex and unforgiving. One mistake in your financial calculations or missing document can result in automatic rejection. IRS agents are trained to find reasons to deny applications, not approve them. Professional representation also means you don't have to deal with IRS agents directly. We handle all communication, negotiate on your behalf, and know which arguments work with different IRS departments. The peace of mind alone is worth it for most people.

IRS Fresh Start Program Friendsville, PA