Question 1

What is the IRS Fresh Start Program and do I qualify?

Accepted Answer

The Fresh Start Program started in 2011 as the Fresh Start Initiative and is now known as an Offer in Compromise, designed to provide tax relief options that make it less stressful and more achievable for Americans to manage tax debt. You may qualify if you owe $50,000 or less in taxes, penalties, and interest, are current on all required tax filings, can demonstrate financial hardship, and self-employed individuals may qualify if they show a 25% or more drop in income. The program offers several relief options including installment agreements, offers in compromise, penalty abatements, and currently not collectible status. The key is demonstrating that paying your full tax debt would cause significant financial strain. We will evaluate your specific situation during a free consultation to determine which Fresh Start options give you the best outcome.

Question 2

How much can I actually save through the Fresh Start Program?

Accepted Answer

Eligible taxpayers may be able to reduce 90% or more of what they owe through the Fresh Start Program, though the actual savings depend on your specific financial situation and which relief option you qualify for. An Offer in Compromise allows you to settle your tax debt for less than the full amount you owe, while penalty abatement can save thousands of dollars by eliminating late filing or payment penalties. Some taxpayers qualify for currently not collectible status, which temporarily stops collection while they get back on their feet financially. The amount you save isn't just about the final settlement - it's also about stopping the bleeding. Every month your tax debt goes unresolved, the IRS adds interest and penalties. Getting professional help quickly can prevent thousands in additional charges while negotiating the best possible resolution for your situation.

Question 3

What happens if I owe more than $50,000 in tax debt?

Accepted Answer

While the streamlined installment agreement threshold is $50,000, you may still qualify by making a partial payment to reduce the balance to meet the threshold. This strategy can help you access more flexible repayment terms. Even if you don't qualify for streamlined agreements, other Fresh Start options remain available. You might qualify for a traditional installment agreement with different terms, or an Offer in Compromise if you can demonstrate that paying the full amount would create economic hardship. The key is working with experienced tax professionals who understand all available options. We have helped clients with various debt levels find solutions. We'll analyze your complete financial picture to determine the most effective approach, whether that involves partial payments to meet thresholds, negotiating alternative agreements, or pursuing other relief programs that fit your specific circumstances.

Question 4

How long does the Fresh Start Program application process take?

Accepted Answer

The duration depends on the relief option you choose - installment agreements can extend over several years, while an Offer in Compromise might settle your debt more quickly, and the program itself is an ongoing initiative available to eligible taxpayers at any time. Your offer is automatically accepted if the IRS doesn't make a determination within two years of the IRS receipt date, though most cases resolve much faster than that. Simple installment agreements might be approved within 30-60 days, while more complex offers in compromise typically take 6-24 months. The most important thing is getting started immediately. While your case is being processed, having professional representation stops most IRS collection activities. We will establish representation quickly to protect you from wage garnishments, bank levies, and other enforcement actions while negotiating your settlement. The sooner you begin the process, the sooner you can stop worrying about IRS collection letters and start sleeping peacefully again.

Question 5

Will the IRS stop trying to collect from me once I apply?

Accepted Answer

The IRS suspends other collection activities while they consider your Fresh Start application, and once you're on an installment plan, you will no longer receive IRS collection letters or be susceptible to penalties. However, this protection begins when you have proper representation and submit the correct paperwork. Simply calling the IRS yourself doesn't provide the same level of protection as having experienced tax professionals handle your case from the beginning. We immediately establish representation with the IRS, which stops most collection activities while we prepare and submit your Fresh Start application. This gives you breathing room to work on a permanent solution without worrying about surprise wage garnishments or bank levies. The key is acting quickly - the longer you wait, the more collection actions the IRS can take, and the more penalties and interest accumulate on your debt.

Question 6

Should I try to handle this myself or hire professional help?

Accepted Answer

The amount the Fresh Start Program can help you is directly related to the level of experience and knowledge of the person or firm you have hired, and accurately completing the offer paperwork and correctly reporting your assets and income can have a dramatic effect on the likelihood that your offer will be accepted - the right help in this situation can be a game changer. While about 26% of Offers in Compromise are accepted by the IRS generally, a good enrolled agent, CPA or tax attorney has an acceptance rate that may be as much as five times the national average. We help you avoid problems by determining whether you're really eligible before applying. 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 IRS has teams of lawyers and accountants working against you. You need experienced professionals on your side who understand IRS procedures, know how to negotiate effectively, and can protect your rights throughout the process. We offer free consultations so you can understand your options before making any decisions.

IRS Fresh Start Program Girdland, PA