Question 1

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

Accepted Answer

Eligible taxpayers can reduce their federal tax debt by up to 90% or more through an Offer in Compromise. The exact amount depends on your income, expenses, and asset equity. The IRS uses a formula considering your ability to pay. If you owe $25,000 but can only afford $50 monthly payments, you might qualify for a settlement of $3,000 to $5,000. We've helped Wayne County residents eliminate tens of thousands in tax debt through proper application of Fresh Start provisions. Your reduction amount isn't guaranteed, but we evaluate your case thoroughly before recommending the best approach for maximum savings.

Question 2

Do I qualify for the Fresh Start Program if I owe more than $50,000?

Accepted Answer

Yes, you can still qualify even if you owe more than $50,000. The $50,000 limit applies specifically to streamlined installment agreements, not the entire Fresh Start Program. For debts above $50,000, you can make a partial payment to reduce your balance below the threshold. Alternatively, you might qualify for an Offer in Compromise or other Fresh Start options regardless of the amount owed. We regularly help clients with six-figure tax debts find relief through the program. The key is demonstrating financial hardship and inability to pay the full amount. Your debt size doesn't disqualify you from getting help.

Question 3

Will the Fresh Start Program stop the IRS from garnishing my wages immediately?

Accepted Answer

Yes, the IRS suspends collection activities, including wage garnishments, once we submit your Fresh Start application. This protection continues throughout the negotiation process. If you're already facing garnishment, we can often get it released within days of filing your paperwork. The IRS is required to halt collection actions while considering your request for relief. This immediate protection is crucial for Wayne County families living paycheck to paycheck. You don't have to wait months for resolution to stop losing portions of your income to tax debt.

Question 4

How long does the IRS Fresh Start Program application process take?

Accepted Answer

Most Fresh Start applications are processed within 6 to 12 months, though simple cases can resolve faster. Offers in Compromise typically take longer than installment agreements. The timeline depends on your chosen relief option and case complexity. Streamlined installment agreements for debts under $50,000 often approve within 60 days. Currently-Not-Collectible status can be granted immediately if you meet hardship criteria. We keep you informed throughout the process and handle all IRS communications. While you wait for final approval, you're protected from collection actions and can focus on rebuilding your financial stability.

Question 5

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

Accepted Answer

If your initial application is rejected, you have appeal rights and can resubmit with additional documentation. Rejection doesn't end your options for tax relief. We analyze the rejection reasons and adjust our strategy. Sometimes it's a matter of providing better financial documentation or choosing a different relief option. Many successful cases require multiple submissions to get the best outcome. The IRS also has collection statute limitations. Even if Fresh Start options don't work, your tax debt may expire after 10 years. We explore every avenue to resolve your situation favorably.

Question 6

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 before applying for Fresh Start relief. The IRS requires compliance with filing obligations as a condition of participation. We help prepare and file any missing returns as part of our service. This often reveals refunds that reduce your overall tax debt. Once all returns are filed, we can proceed with your Fresh Start application. Filing missing returns also stops additional penalties from accumulating. The sooner we get you compliant, the sooner we can begin negotiating your debt relief and protecting your assets from IRS collection actions.

IRS Fresh Start Program Hemlock Grove, PA