Question 1

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

Accepted Answer

The reduction depends on your specific financial situation and which Fresh Start option you qualify for. Offers in Compromise can reduce debt by 90% or more for eligible taxpayers. Penalty abatement alone often cuts debt by 25-50% since penalties compound over time. Installment agreements don't reduce the total amount owed but make payments manageable—often as low as $25-50 per month for qualifying taxpayers. Currently Not Collectible status stops collection entirely while your financial situation improves, though interest continues accruing. The key is having a professional evaluate your case. What looks impossible to you might have a straightforward solution under Fresh Start rules. We've helped clients go from owing six figures to paying a few thousand dollars.

Question 2

What happens to IRS collection actions while my case is being processed?

Accepted Answer

Collection activity typically stops once we file proper representation paperwork with the IRS. This means no more threatening letters, phone calls, or surprise bank levies while we negotiate your case. If you already have a wage garnishment or bank levy, we can often get those released quickly by demonstrating financial hardship or by entering into a payment agreement. The IRS would rather have you paying something than nothing at all. However, this protection only applies when you're working with qualified tax professionals who know how to properly represent you. Trying to handle this yourself or working with unqualified companies can make your situation worse. The IRS takes representation seriously—they'll work with us in ways they won't work with you directly.

Question 3

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

Accepted Answer

Yes, you can still qualify for Fresh Start relief even with larger tax debts. The $50,000 threshold applies specifically to streamlined installment agreements, which allow faster approval with less paperwork. If you owe more than $50,000, you'll need to provide detailed financial statements, but you can still get installment agreements, offers in compromise, or other Fresh Start options. In fact, larger debts sometimes qualify for bigger percentage reductions through Offers in Compromise. The program is designed to help people overwhelmed by back taxes and penalties regardless of the amount owed. We've successfully negotiated Fresh Start solutions for clients owing hundreds of thousands of dollars. The key is proving to the IRS that our proposed solution is the most they can reasonably expect to collect from you.

Question 4

How long does the Fresh Start Program process typically take?

Accepted Answer

Simple installment agreements often get approved within 30-60 days. Offers in Compromise take longer—typically 6-12 months for the IRS to make a final decision. Currently Not Collectible status can be granted relatively quickly if you clearly meet financial hardship criteria. The timeline depends heavily on having all required documentation submitted correctly the first time. Missing paperwork or errors can add months to the process. This is why professional representation matters—we know exactly what the IRS wants and how they want it presented. During the process, collection activity is typically suspended, so you get immediate relief even while waiting for final approval. We keep you updated throughout and handle all communication with the IRS so you can focus on getting your life back on track.

Question 5

What documents do I need to apply for Fresh Start Program relief?

Accepted Answer

You'll need all unfiled tax returns completed first—the IRS won't negotiate until you're current on filings. Financial documents include recent pay stubs, bank statements, asset valuations, and detailed monthly expense records. For Offers in Compromise, the documentation requirements are extensive. You'll need Form 433-A (individuals) or 433-B (businesses), which detail every aspect of your financial situation. The IRS wants to see that your offer represents the maximum they can collect from you. We handle all document preparation and ensure everything is submitted correctly. Many people try to do this themselves and get rejected for minor paperwork errors. The IRS is very particular about forms and documentation—one mistake can derail your entire case and waste months of time.

Question 6

Can the IRS reject my Fresh Start Program application?

Accepted Answer

Yes, the IRS can and does reject applications that don't meet their criteria or aren't properly prepared. Common rejection reasons include incomplete documentation, unrealistic offers, or failure to demonstrate genuine financial hardship. However, rejection isn't the end of the road. Most rejections can be appealed or the application can be resubmitted with corrections. This is where professional representation becomes crucial—we know what the IRS is looking for and how to present your case in the strongest possible light. The worst thing you can do is submit a poorly prepared application yourself. Not only will it get rejected, but it can actually hurt your chances of approval later. The IRS keeps records of all submissions, and a pattern of rejected applications makes them more skeptical of future requests. Let professionals handle it right the first time.

IRS Fresh Start Program Hop Bottom, PA