Question 1

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

Accepted Answer

The reduction depends on which program you qualify for and your specific financial situation. Penalty Abatement typically removes 25-40% of your total debt by eliminating penalties and some interest. Offers in Compromise can reduce your debt by 90% or more if you meet the strict qualification requirements. Most clients see meaningful reductions. Someone owing $50,000 might end up paying $15,000 through penalty abatement and an installment agreement. Another person might qualify for an Offer in Compromise and settle $75,000 in debt for $8,000. The key is having a professional evaluate which programs you actually qualify for rather than hoping for the best-case scenario.

Question 2

What's the difference between doing this myself versus hiring professionals?

Accepted Answer

You wouldn't go to court without a lawyer, so why face the IRS without a tax professional? The IRS processes over 240 million tax returns annually - they have systems and procedures that aren't obvious to taxpayers. Professional representation means someone who knows exactly which forms to file, what documentation the IRS requires, and how to present your case for maximum debt reduction. We also become your official representative, so the IRS stops contacting you directly. Most importantly, we know which programs you actually qualify for versus which ones sound good in advertisements. DIY attempts often fail because people don't understand the qualification requirements or submit incomplete applications. When that happens, you're back to square one but now the IRS knows you're trying to resolve the debt, which can sometimes accelerate collection activities.

Question 3

How long does the IRS Fresh Start Program process take?

Accepted Answer

Simple installment agreements can be approved in 30-60 days. Penalty Abatement requests typically take 60-90 days for the IRS to process. Offers in Compromise are more complex and usually take 6-12 months from submission to final decision. Currently-Not-Collectible status can often be granted within 30-45 days if you provide complete financial documentation. Lien Withdrawal requests typically process in 30-60 days once you meet the requirements. The timeline depends partly on how organized your financial records are and how quickly you can provide requested documentation. It also depends on IRS workload - they're faster during certain times of the year and slower during peak tax season. Having professional representation usually speeds things up because we know exactly what the IRS wants and submit complete applications the first time.

Question 4

Will the IRS Fresh Start Program stop wage garnishment and bank levies?

Accepted Answer

Yes, but the timing matters. If you're already facing garnishment or levies, filing for Fresh Start Program relief can often get them released, especially if you qualify for Currently-Not-Collectible status or can set up an installment agreement quickly. The IRS typically releases levies within 30 days of approving an installment agreement. Wage garnishments usually stop once they receive your signed installment agreement. If you qualify for Currently-Not-Collectible status, all collection activity stops immediately upon approval. However, you need to act before the IRS files liens or starts garnishment when possible. Once collection actions begin, it takes longer to get them reversed even after you're approved for a Fresh Start Program. That's why getting professional help early in the process protects more of your assets and income.

Question 5

Do I qualify for the IRS Fresh Start Program if I haven't filed recent tax returns?

Accepted Answer

You must be current on all required tax filings to qualify for most Fresh Start Program options. This means filing all missing returns before the IRS will consider your application for installment agreements, offers in compromise, or penalty abatement. The good news is that filing missing returns often works in your favor. Many people owe less than they think once they actually complete the returns with proper deductions and credits. Sometimes you'll even discover you're entitled to refunds that can offset part of your debt. Professional help is especially valuable here because we can prepare all missing returns efficiently and ensure you're claiming every deduction you're entitled to. We can also request penalty abatement for late filing once all returns are submitted, which often reduces your total debt significantly before setting up your payment plan.

Question 6

What happens if the IRS rejects my Fresh Start Program application?

Accepted Answer

Rejection doesn't mean you're out of options. The IRS usually provides specific reasons why applications are denied, and many of these can be addressed with additional documentation or by applying for a different program. For example, if your Offer in Compromise gets rejected because your asset value is too high, you might still qualify for an installment agreement or Currently-Not-Collectible status. If penalty abatement gets denied for one reason, there are often alternative grounds for requesting the same relief. Professional representation is crucial here because we know how to appeal rejections and which alternative strategies are most likely to succeed. We can also resubmit applications with stronger documentation or help you qualify for different programs. Most tax resolution cases require trying multiple approaches before finding the one that works.

IRS Fresh Start Program Gelatt, PA