Question 1

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

Accepted Answer

You may qualify if you owe $50,000 or less in combined taxes, penalties, and interest, have filed all required tax returns, and can demonstrate financial hardship or inability to pay the full amount. Self-employed individuals may qualify with a 25% or greater drop in income.

However, meeting basic requirements doesn't guarantee approval. The IRS evaluates your complete financial picture, including income, expenses, assets, and future earning potential. They want to collect the maximum amount possible within a reasonable timeframe.

That's why professional evaluation is crucial. We analyze your specific situation against current IRS guidelines to determine which programs you realistically qualify for and which approach gives you the best outcome.

Question 2

What's the difference between an Offer in Compromise and installment agreement?

Accepted Answer

An Offer in Compromise lets you settle your tax debt for less than the full amount owed—sometimes significantly less. But the IRS only accepts offers when they believe it's the most they can realistically collect from you. You must prove you cannot pay the full amount without creating genuine financial hardship.

An Installment Agreement spreads your full tax debt over monthly payments, typically 3-6 years. You still pay the complete amount owed plus interest, but in manageable monthly installments. The qualification requirements are less stringent than an Offer in Compromise.

Most taxpayers assume they want an Offer in Compromise, but installment agreements are often more realistic and faster to approve. The right choice depends on your income, expenses, assets, and long-term financial outlook. We evaluate both options to recommend the best strategy for your situation.

Question 3

How long does the Fresh Start Program application process take?

Accepted Answer

Timeline varies significantly based on which program you're applying for and your specific circumstances. Installment Agreements typically take 30-90 days for approval once all paperwork is submitted correctly. The IRS has streamlined these applications for qualifying taxpayers.

Offers in Compromise take much longer—typically 6-12 months or more. The IRS must thoroughly investigate your financial situation, and they often request additional documentation during the review process. Currently Not Collectible status can be processed relatively quickly if you meet the hardship criteria.

The key factor is submitting complete, accurate applications the first time. Incomplete applications get rejected and restart the entire process. Missing deadlines can disqualify you entirely. That's why professional preparation is so important—we ensure everything is done right the first time to avoid costly delays.

Question 4

Will applying for the Fresh Start Program hurt my credit score?

Accepted Answer

Applying for Fresh Start Programs doesn't directly impact your credit score. The application process itself isn't reported to credit agencies. However, existing tax liens and levies that led you to seek relief are already affecting your credit.

Successfully completing a Fresh Start Program can actually improve your credit over time. Resolving tax liens through the program allows you to request lien withdrawal, which removes the lien from your credit report. This can significantly boost your credit score.

The bigger credit risk is doing nothing. Unresolved tax debt leads to additional liens, levies, and collection actions that severely damage credit. Taking action through the Fresh Start Program stops the deterioration and starts the recovery process. Most clients see credit improvement within 6-12 months of successful program completion.

Question 5

Can I apply for the Fresh Start Program if I have unfiled tax returns?

Accepted Answer

You must file all required tax returns before the IRS will consider any Fresh Start Program application. This is a strict requirement with no exceptions. The IRS wants to see your complete tax compliance history before offering any relief programs.

Filing missing returns often reveals additional tax liability, but it also starts the clock on resolution options. Some taxpayers discover they're owed refunds from earlier years, which can offset current balances. Others find their actual liability is less than IRS estimates.

We handle the entire process—preparing and filing missing returns, then immediately moving into Fresh Start Program applications. This coordinated approach ensures you meet all IRS requirements while positioning your case for the best possible outcome. Trying to handle unfiled returns separately from debt resolution often creates complications and delays.

Question 6

What happens if my Fresh Start Program application gets rejected?

Accepted Answer

Rejection doesn't end your options, but it does require immediate strategic response. The IRS typically provides specific reasons for rejection, which helps determine next steps. Common rejection reasons include incomplete financial documentation, failure to meet qualification criteria, or mathematical errors in applications.

You can often reapply after addressing the rejection reasons, but timing is critical. Some programs have waiting periods between applications. Meanwhile, penalties and interest continue accumulating, and the IRS may resume collection actions.

Professional representation becomes even more valuable after rejection. We analyze rejection letters, identify correctable issues, and determine whether to reapply for the same program, pursue a different Fresh Start option, or explore alternative resolution strategies. Many cases that initially get rejected ultimately succeed with proper revision and resubmission.

IRS Fresh Start Program Gravity, PA