Question 1

How much of my tax debt can the IRS Fresh Start Program eliminate?

Accepted Answer

The amount varies based on your financial situation, but eligible taxpayers often reduce their tax debt by 90% or more through an Offer in Compromise. The IRS accepts these offers when they believe it's the most they'll realistically collect from you. Your income, expenses, assets, and ability to pay all factor into the calculation. If you're facing genuine financial hardship, owe more than you could reasonably pay in your lifetime, or there's doubt about what you actually owe, you might qualify for significant debt reduction. We've seen clients settle $50,000 tax debts for $5,000, or $100,000 debts for $10,000. Every case is different, but the Fresh Start Program gives the IRS flexibility to accept much less than the full amount when circumstances warrant it.

Question 2

What happens if I don't qualify for an Offer in Compromise?

Accepted Answer

You still have several other Fresh Start Program options that can provide real relief. Installment Agreements let you pay your debt over time with manageable monthly payments—the IRS now accepts streamlined plans for balances up to $50,000. Currently-Not-Collectible status temporarily stops all collection activity if you're facing financial hardship. Your case gets reviewed annually, but during that time, the IRS can't garnish wages or levy bank accounts. Penalty Abatement can eliminate costly penalties that often make up 25-40% of your total debt. Even if you have to pay the underlying taxes, removing penalties and interest can cut your debt substantially and make payment plans much more affordable.

Question 3

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

Accepted Answer

Streamlined Installment Agreements typically get approved within 30-60 days since they require minimal documentation. These work for taxpayers who owe $50,000 or less and can pay the balance within six years. Offers in Compromise take longer—usually 6-12 months for the IRS to review and decide. The process involves submitting detailed financial statements, supporting documentation, and often requires back-and-forth negotiation. Currently-Not-Collectible status and Penalty Abatement requests usually get resolved within 30-90 days. The timeline depends on your specific circumstances and how quickly we can gather the required documentation. We handle all communication with the IRS to keep things moving as fast as possible.

Question 4

Can the IRS still garnish my wages while my Fresh Start application is pending?

Accepted Answer

Generally, no. When we submit a properly prepared Fresh Start Program application, the IRS typically places a hold on collection activities while they review your case. This means no new wage garnishments, bank levies, or asset seizures during the review period. However, if you already have an active wage garnishment or bank levy in place, those might continue unless we specifically request a Collection Due Process hearing or appeal. We know how to trigger these protections as part of our application strategy. The key is acting quickly and submitting complete applications. Incomplete or improperly prepared applications don't get the same protection, which is why professional representation matters. We ensure your application triggers all available collection protections from day one.

Question 5

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

Accepted Answer

The specific documents depend on which Fresh Start option you're pursuing, but most applications require recent tax returns, bank statements, pay stubs, and a complete list of monthly expenses. For Offers in Compromise, you'll also need asset valuations and detailed financial statements. We provide you with a customized checklist based on your situation so you know exactly what to gather. Most clients already have 80% of what we need—things like mortgage statements, utility bills, and loan documents that show your true financial picture. Don't worry if you're missing some documentation. We know how to work with what you have and can often obtain missing tax returns or transcripts directly from the IRS. The important thing is starting the process—we'll guide you through gathering everything else as we go.

Question 6

How much does it cost to get help with the Fresh Start Program?

Accepted Answer

We offer free initial consultations to evaluate your case and explain your options with no obligation. Our fees depend on the complexity of your situation and which Fresh Start Program option we pursue on your behalf. We accept major credit cards (Mastercard and Visa) with a 4% convenience fee, and we can discuss payment arrangements that work with your budget. We believe in transparent pricing—no hidden fees or surprise charges after we start working together. Most clients find our fees are a fraction of what they save through the Fresh Start Program. When we can reduce a $50,000 tax debt to $5,000, or stop a wage garnishment that's taking $800 per month, the return on investment becomes clear quickly. Call 570-630-0201 or text 570-470-5228 to discuss your specific situation.

IRS Fresh Start Program Island Plain, PA