Question 1

Do I qualify for the IRS Fresh Start Program in 2025?

Accepted Answer

You may qualify if you owe $50,000 or less in combined taxes, penalties, and interest, have filed all required returns, and can demonstrate financial hardship. Self-employed individuals need to show a 25% income decline.The IRS looks at your monthly income versus necessary living expenses. If paying your tax debt in full would prevent you from covering basic needs like housing, food, transportation, and medical care, you likely qualify for some form of relief.Don't assume you don't qualify based on income alone. We've helped clients with six-figure incomes get significant relief when their expenses and circumstances warranted it. The key is presenting your case properly with complete financial documentation.

Question 2

How much will the Fresh Start Program actually save me?

Accepted Answer

Savings depend on your specific situation and which program you qualify for. Offers in Compromise can reduce debt by 80-90% or more—we've seen $100,000 debts settled for $10,000. But OIC approval is strict and requires genuine financial hardship.Penalty abatement often saves 25-50% of your total debt since penalties and interest can exceed the original tax owed. First-time penalty abatement is nearly automatic if you've been compliant for the past three years.Payment plans don't reduce the principal but stop penalties and interest from growing once you're in good standing. This prevents a $20,000 debt from becoming $40,000 over time. The real savings come from stopping the financial bleeding and getting your life back.

Question 3

How long does it take to get approved for Fresh Start relief?

Accepted Answer

Streamlined installment agreements for debts under $50,000 typically approve within 30-45 days. You can often start making payments immediately while the paperwork processes, which stops additional penalties.Offers in Compromise take 6-18 months because the IRS thoroughly investigates your finances. However, collection actions stop once you submit a complete application, giving you immediate relief from garnishments and levies.Currently Not Collectible status can be granted within 30-60 days with proper documentation. Penalty abatement requests usually process within 60-90 days. Working with professionals speeds everything up because we submit complete, accurate applications the first time.

Question 4

Will the IRS stop trying to collect while my application is pending?

Accepted Answer

Yes, for most programs. A complete Offer in Compromise application triggers an automatic collection hold—no wage garnishments, bank levies, or asset seizures while the IRS reviews your case.Installment agreement applications don't automatically stop collections, but approval usually happens quickly enough that it's rarely an issue. Once approved and you make your first payment, all collection actions cease.Currently Not Collectible status stops collections immediately upon approval. However, the IRS will still intercept future tax refunds to apply toward your debt. The key word is "complete"—incomplete applications don't trigger these protections.

Question 5

Can I get Fresh Start relief with unfiled tax returns?

Accepted Answer

No. The IRS requires full compliance before considering any relief applications. This means all required returns must be filed, even if you can't pay the taxes owed.This compliance requirement is non-negotiable and one of the biggest reasons applications get rejected. If you have unfiled returns from 2019, 2020, 2021, 2022, or 2023, those must be prepared and submitted first.The good news: once your returns are filed, you can immediately apply for Fresh Start relief on your total tax debt. We help clients prepare back returns as part of our comprehensive service, then pursue the most advantageous relief option based on your complete tax picture.

Question 6

What if the IRS rejects my Fresh Start application?

Accepted Answer

Rejection isn't the end of the road. For Offers in Compromise, you have 30 days to appeal or can submit a revised offer addressing the IRS's concerns. Many rejections stem from incomplete documentation or calculation errors, not true ineligibility.Installment agreement rejections are rare but usually mean your proposed payment amount was too low. You can reapply immediately with higher monthly payments or provide additional financial information to justify lower payments.The key is understanding exactly why the IRS said no. Their rejection letters explain the specific issues, and an experienced professional can help you address those problems in a new application. Sometimes a small change in how you present your financial situation makes all the difference.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.Would you go to court without a lawyer? Of course not! Then why would you go before the IRS without a trusted tax professional?Text us at 570-470-5228. We accept Mastercard and Visa with a 4% convenience fee.

IRS Fresh Start Program Lakeville, PA