Question 1

What are the income requirements for the IRS Fresh Start Program?

Accepted Answer

You may qualify for the Fresh Start Program if you meet these basic requirements: Owe $50,000 or less in taxes, penalties, and interest, though some options have different thresholds. The program doesn't have strict income limits like other government programs. Instead, the IRS looks at your ability to pay. You can demonstrate financial hardship or inability to pay the debt in full without economic strain. If paying your tax debt would prevent you from meeting basic living expenses, you likely qualify for some form of relief. For self-employed individuals in Great Bend, PA, self-employed individuals may qualify if they show a drop of 25% or more in income. This recognizes that small business income can fluctuate significantly, especially in today's economy.

Question 2

How long does the Fresh Start Program application process take?

Accepted Answer

The timeline varies depending on which option you pursue, but we can stop IRS collection actions immediately once we represent you. The IRS suspends other collection activities while your case is being processed. For installment agreements, approval often happens within 30-60 days. These are typically the fastest option for taxpayers who can afford monthly payments. Offers in Compromise take longer—usually 6-12 months—because the IRS thoroughly reviews your financial situation. The key is acting quickly. Your offer is automatically accepted if the IRS doesn't make a determination within two years of the IRS receipt date. While you wait, you're protected from collection actions and can start rebuilding your financial stability.

Question 3

Can I apply for the Fresh Start Program if I haven't filed all my tax returns?

Accepted Answer

No, you must be current on all required tax filings to qualify. You must be current on all required tax filings and have filed all required tax returns and made all required estimated payments. This is one of the basic eligibility requirements the IRS strictly enforces. However, this doesn't disqualify you permanently. We can help you get caught up on your unfiled returns first, then pursue Fresh Start options. Many Great Bend, PA taxpayers we work with initially have unfiled returns, and we handle the entire process from start to finish. The IRS wants to see that you're committed to staying compliant going forward. Once your returns are filed and you're current, you can pursue the relief options that make sense for your situation. Don't let unfiled returns prevent you from getting the help you need.

Question 4

Will the Fresh Start Program completely eliminate my tax debt?

Accepted Answer

It depends on your specific situation and which option you qualify for. Taxpayers who apply and are considered eligible can significantly reduce their federal tax debt; in some circumstances, they may be able to reduce 90% or more of what they owe. An Offer in Compromise can eliminate most or all of your debt if the IRS determines you'll never be able to pay the full amount. In some cases, taxpayers may pay as little as 10% to 20% of their total debt, but this varies depending on financial circumstances. This is true debt forgiveness, not just payment plans. Other options like installment agreements don't eliminate debt but make it manageable with affordable monthly payments. Penalty abatement can significantly reduce your total balance by removing penalties that often double or triple the original tax owed. The goal is finding the solution that works best for your financial reality.

Question 5

What happens if the IRS rejects my Fresh Start application?

Accepted Answer

Rejection isn't the end of your options. We can appeal the decision, provide additional documentation, or pursue alternative relief strategies. The IRS often rejects initial applications due to missing information or incorrect calculations rather than true ineligibility. If one Fresh Start option doesn't work, we explore others. Maybe you don't qualify for an Offer in Compromise, but you can get an affordable installment agreement. Or perhaps penalty abatement can reduce your debt enough to make full payment possible. We also pursue non-Fresh Start options when necessary. Currently Not Collectible status, innocent spouse relief, or bankruptcy might be better solutions depending on your circumstances. Our job is finding the path that actually resolves your tax problems, whether that's through Fresh Start or other legitimate strategies.

Question 6

Do I need a tax professional to apply for the Fresh Start Program?

Accepted Answer

While you can apply directly to the IRS, having professional representation significantly improves your chances of success. There is not a single Fresh Start application. In fact, when companies talk about applying for the Fresh Start program, they are using misleading language. The process involves multiple forms, financial documentation, and strategic decisions about which option to pursue. Tax professionals know how to present your financial information in the best possible light and avoid common mistakes that lead to rejection. We understand IRS procedures, deadlines, and negotiation tactics that aren't obvious to taxpayers handling their own cases. Most importantly, we stop collection actions immediately upon representation, giving you breathing room while we work on your case. The IRS suspends other collection activities during the process. This protection alone often justifies professional representation, especially if you're facing wage garnishment or bank levies. We will stand between you and the IRS, negotiate the lowest legal settlement, and give you the fresh start you deserve.

IRS Fresh Start Program Great Bend, PA