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, are current on all required tax filings, and can demonstrate financial hardship or inability to pay the full debt without economic strain. Self-employed individuals often qualify if they've experienced a 25% or greater drop in income. The key is having all your tax returns filed and being able to document your financial situation accurately. We review your specific circumstances during our consultation to determine which Fresh Start options offer the best outcome for your situation. Don't assume you don't qualify - many taxpayers are surprised to learn they have more options than they realized.

Question 2

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

Accepted Answer

An installment agreement lets you pay your full tax debt over time through monthly payments, typically extending up to 72 months for debts under $50,000. You'll pay the entire amount owed plus interest, but it stops collection activities and prevents wage garnishments. An Offer in Compromise actually reduces the total amount you owe based on your ability to pay. If approved, you settle your debt for less than the full amount - sometimes dramatically less. However, qualification requirements are stricter, and the application process is more complex. We analyze your financial situation to determine which option provides the best outcome. Sometimes an installment agreement is more realistic and gets you relief faster. Other times, an Offer in Compromise can save you tens of thousands of dollars if you meet the criteria.

Question 3

How long does the Fresh Start Program application process take?

Accepted Answer

Timeline varies depending on which program you're applying for and the complexity of your case. Installment agreements can often be approved within 30-60 days if your paperwork is complete and accurate. Offer in Compromise applications typically take 6-12 months for the IRS to review and decide. During the application period, the IRS generally suspends collection activities, giving you protection from wage garnishments and bank levies. We keep you informed throughout the process and handle all communications with the IRS on your behalf. The key to faster resolution is submitting complete, accurate documentation the first time. This is where professional representation makes a significant difference - we know exactly what the IRS requires and how to present your case for the best possible outcome.

Question 4

Can the IRS reject my Fresh Start Program application?

Accepted Answer

Yes, the IRS can reject applications that don't meet program requirements or contain incomplete information. Common rejection reasons include missing documentation, unrealistic offers based on your financial capacity, or failure to demonstrate genuine financial hardship. This is exactly why professional representation matters. We review your situation thoroughly before submitting any application, ensuring you meet all requirements and your case is presented in the strongest possible way. If an application is rejected, we can often address the issues and resubmit. The IRS has strict guidelines for each program, and small mistakes can result in rejection and lost time. Our experience with these programs means we know what the IRS is looking for and how to avoid common pitfalls that trip up taxpayers who try to handle applications themselves.

Question 5

What happens if I don't qualify for the Fresh Start Program?

Accepted Answer

Even if you don't qualify for specific Fresh Start Program options, other tax relief solutions may be available. Currently Non-Collectible status can temporarily halt collection activities if you're experiencing severe financial hardship. Penalty abatement can reduce your total debt by eliminating costly penalties. We can also negotiate alternative payment arrangements or explore other IRS programs that might fit your situation better. Sometimes taxpayers don't qualify for one program but are perfect candidates for another approach that provides similar relief. The worst thing you can do is assume you have no options and ignore the problem. Tax debt doesn't disappear, and penalties and interest continue to accumulate. We evaluate every possible avenue for relief and find the solution that works best for your specific circumstances.

Question 6

Should I try to handle my IRS tax debt myself?

Accepted Answer

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 experienced professionals working on their behalf - you should too. DIY approaches often result in missed opportunities, rejected applications, and settlements that could have been much better with professional representation. The IRS procedures are complex, and small mistakes can cost you thousands of dollars or years of additional payments. Professional representation pays for itself through better outcomes, faster resolution, and protection from costly mistakes. We handle all communications with the IRS, negotiate on your behalf, and ensure you get the best possible resolution for your situation. End the sleepless nights - call 570-630-0201 or book online today.

IRS Fresh Start Program Hickory Grove, PA