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 amount. Self-employed individuals may qualify if they've experienced a 25% or more drop in income.The program is designed for taxpayers who genuinely cannot pay their full tax debt without causing significant financial strain. During our free consultation, we'll review your specific situation and determine which Fresh Start options are available to you. Even if you owe more than $50,000, you might still qualify by making a partial payment to reduce your balance below the threshold.

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 up to 72 months for amounts under $50,000. You'll still pay the full amount you owe, plus interest, but it becomes manageable through smaller monthly payments.An Offer in Compromise actually reduces the total amount you owe. The IRS accepts a lesser amount as payment in full, essentially forgiving the remaining debt. However, you must prove that you'll never be able to pay the full amount due to your financial circumstances. Offers in Compromise are harder to qualify for but provide much greater savings when approved. We'll analyze your situation to determine which option provides the better outcome.

Question 3

How long does the Fresh Start Program application process take?

Accepted Answer

The timeline varies depending on which program you're applying for and how complex your case is. Streamlined installment agreements can often be approved within 30-60 days since they require less documentation. Offers in Compromise typically take 6-12 months or longer because the IRS conducts a thorough review of your financial situation.During the application process, the IRS generally suspends collection activities, which means no wage garnishments or bank levies while your case is being reviewed. We'll keep you updated throughout the process and handle all communication with the IRS on your behalf. The key is starting the process as soon as possible – the longer you wait, the more penalties and interest accumulate.

Question 4

Will applying for the Fresh Start Program stop IRS collection actions immediately?

Accepted Answer

In most cases, yes. When we submit a properly prepared Fresh Start application, the IRS typically suspends collection activities while they review your case. This means they'll stop wage garnishments, bank levies, and other aggressive collection actions during the review period.However, this protection isn't automatic – it depends on submitting the correct forms with all required documentation. This is why professional representation is so important. We know exactly what the IRS requires and how to present your case in the best possible light. If collection actions have already started, we can often get them released while negotiating your settlement or payment plan.

Question 5

What happens if my Fresh Start Program application is denied?

Accepted Answer

If your initial application is denied, you have appeal rights, and we'll explore all available options. Sometimes applications are denied due to missing documentation or calculation errors that can be corrected and resubmitted. Other times, we might need to pursue a different type of relief program.The IRS rejection letter will explain exactly why your application was denied, giving us a roadmap for addressing their concerns. We might need to gather additional financial documentation, adjust the offer amount, or demonstrate changed circumstances. Even if one type of relief is denied, you might still qualify for other programs like Currently Not Collectible status or penalty abatement. We don't give up after the first "no" – we explore every possible avenue to get you the relief you deserve.

Question 6

How much does professional help with the Fresh Start Program cost?

Accepted Answer

Our fees depend on the complexity of your case and which services you need. We offer free consultations to assess your situation and explain all costs upfront – no surprises or hidden fees. Many clients find that professional representation actually saves them money by securing better settlements or payment terms than they could negotiate alone.Consider this: if we can reduce your tax debt by even 20%, the savings often far exceed our fees. Plus, we accept payment plans and major credit cards (with a 4% convenience fee). The real question isn't whether you can afford professional help – it's whether you can afford to navigate this complex process alone and potentially miss out on thousands in savings. Call 570-630-0201 or text 570-470-5228 to discuss your specific situation and get a clear picture of both costs and potential savings.

IRS Fresh Start Program Indian Point, PA