Question 1

What is the IRS Fresh Start Program and do I qualify in Pennsylvania?

Accepted Answer

The IRS Fresh Start Program is a comprehensive set of tax relief policies designed to help overwhelmed taxpayers manage and reduce their tax debt through various resolution options including installment agreements, offers in compromise, and penalty abatement. You may qualify if you owe $50,000 or less in combined taxes, penalties, and interest, have filed all required tax returns, and can demonstrate financial hardship or inability to pay the full amount. Self-employed individuals may qualify with a 25% or greater drop in income. The program specifically helps taxpayers who are overwhelmed by back taxes and penalties due to job loss, business difficulties, medical emergencies, or other financial setbacks that made it impossible to pay taxes when due.

Question 2

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

Accepted Answer

The amount of debt reduction depends on your financial situation and which relief option you qualify for. Through offers in compromise, eligible taxpayers may settle their entire tax debt for significantly less than what they owe—sometimes 90% or more in savings. Installment agreements allow you to pay your debt over up to 72 months with reduced penalties and interest charges. Penalty abatement can eliminate substantial penalty charges if you have a history of tax compliance and faced unexpected financial hardship. Currently not collectible status can temporarily halt all collection activities if you're experiencing severe financial difficulties. Each case is unique, which is why professional evaluation is essential to determine your best options and potential debt relief.

Question 3

Will the IRS stop collection actions while my Fresh Start case is pending?

Accepted Answer

Yes, in most cases the IRS suspends collection activities including wage garnishments, bank levies, and asset seizures while your properly submitted Fresh Start Program application is under review. This provides crucial protection and breathing room. However, interest continues to accrue on your debt, and the IRS may still file tax liens in certain situations. The key is having your application properly prepared and submitted by experienced tax professionals who understand current IRS procedures and requirements. Incomplete or incorrect applications can be rejected immediately, leaving you vulnerable to continued collection efforts. Professional representation ensures your application meets all IRS requirements and maximizes your protection during the review process.

Question 4

How long does the IRS Fresh Start Program process take to complete?

Accepted Answer

The timeline varies based on which relief option you're pursuing and the complexity of your case. Streamlined installment agreements can often be approved within 30-60 days when properly submitted with complete financial documentation. Offers in compromise typically take 6-12 months or longer, as the IRS conducts a thorough review of your financial condition and ability to pay. Penalty abatement requests may be resolved more quickly, often within 30-90 days of submission. The IRS must make a determination on offer in compromise applications within two years, or the offer is automatically accepted. Working with experienced professionals helps ensure your application is complete and properly submitted, avoiding delays from missing documentation or calculation errors.

Question 5

What happens if my IRS Fresh Start Program application gets denied?

Accepted Answer

If your initial application is denied, you have several options including filing an appeal with the IRS Office of Appeals, requesting reconsideration with additional documentation, or exploring alternative resolution strategies based on your circumstances. Many denials result from incomplete documentation, calculation errors, or choosing the wrong relief option for your specific situation. Professional representation significantly increases approval chances by ensuring applications are properly prepared and submitted. Even if one Fresh Start option doesn't work, there are often other alternatives available. Our job is to find the right tax relief solution for your specific circumstances and continue working until we achieve a favorable resolution that gets you back on track.

Question 6

Should I handle my Fresh Start Program application myself or hire professionals?

Accepted Answer

While you can attempt to handle Fresh Start Program applications yourself, the process is extremely complex and mistakes can be costly. IRS forms require precise financial calculations, and incomplete or incorrect applications are routinely rejected. Professional representation ensures your application is properly prepared, significantly increases your chances of approval, and protects you from collection actions during the process. We know which programs you're most likely to qualify for based on current financial circumstances. Would you go to court without a lawyer? Of course not! Then why would you go before the IRS without a trusted tax professional? End the sleepless nights. Call 570-630-0201 or book online today. We will stand between you and the IRS, negotiate the lowest legal settlement, and give you the fresh start you deserve.

IRS Fresh Start Program Lake, PA