Question 1

How do I know if I qualify for the IRS Fresh Start Program?

Accepted Answer

You typically qualify if you owe $50,000 or less in combined tax debt, penalties, and interest. You also need to be current with all required tax filings. The IRS looks at your ability to pay based on your income, expenses, and assets. If paying the full amount would create financial hardship, you're likely a good candidate for relief. Self-employed individuals who've seen a 25% income decline may qualify for additional penalty relief. We'll review your complete situation during your free consultation and tell you exactly which options you qualify for. No guesswork, just straight answers based on current IRS guidelines.

Question 2

What's the difference between an Offer in Compromise and payment plan?

Accepted Answer

An Offer in Compromise actually reduces the total amount you owe, sometimes by 80-90%. You settle your debt for less than the full amount, and the rest is forgiven. A payment plan keeps your full debt amount but breaks it into manageable monthly payments. The IRS has streamlined installment agreements for debts up to $50,000 that can extend up to 72 months. Interest and penalties may continue to accrue, but at a reduced rate. Which option works better depends on your financial situation. If you truly can't pay the full amount, an Offer in Compromise might be your best bet. If you just need more time to pay, an installment agreement could be the simpler solution.

Question 3

How long does the Fresh Start Program process take?

Accepted Answer

It depends on which relief option you're pursuing. Installment agreements can often be approved within 30-60 days if all paperwork is complete. Offers in Compromise take longer, typically 6-12 months for the IRS to review and make a decision. Currently Not Collectible status can sometimes be approved quickly if you clearly meet the financial hardship criteria. The key is getting everything done right the first time. Incomplete applications or missing documentation can add months to the process. That's why we handle all the paperwork and follow up directly with the IRS to keep things moving.

Question 4

Will the IRS accept my Offer in Compromise?

Accepted Answer

The IRS approves about 25-30% of Offers in Compromise, but acceptance rates are much higher when they're properly prepared and presented. The IRS wants to collect what they can reasonably expect to get from you. If your offer reflects your true ability to pay based on their calculation formulas, it has a strong chance of acceptance. If you lowball the offer or don't provide complete financial information, it'll likely get rejected. We know exactly how the IRS calculates reasonable collection potential and how to present your financial situation in the best light. Our clients see much higher acceptance rates because we do the homework upfront and only submit offers that make sense.

Question 5

Can the IRS still garnish my wages while we're negotiating?

Accepted Answer

Generally, the IRS will pause collection actions once you've submitted a complete application for relief. This includes wage garnishments, bank levies, and asset seizures. However, this protection only applies if your application is properly filed and complete. Missing documents or incomplete forms won't stop collection actions. The IRS also won't wait forever, so timing matters. If you're already facing garnishment or levy, we can often get immediate relief by filing the appropriate paperwork and negotiating directly with the IRS collection officer. The sooner you act, the more options you have.

Question 6

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

Accepted Answer

Even if you don't qualify for the main Fresh Start provisions, there are still options available. You might qualify for penalty abatement, which reduces or eliminates penalties for reasonable cause. Bankruptcy might be an option if your tax debt is old enough and meets specific criteria. Some taxpayers qualify for innocent spouse relief if the debt resulted from their spouse's actions. The worst thing you can do is nothing. Ignoring tax debt only makes it worse as penalties and interest continue to compound. We'll explore every possible option to find the best solution for your specific situation, even if it's not through the traditional Fresh Start provisions.

IRS Fresh Start Program Jubilee, PA