Question 1

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

Accepted Answer

You may qualify for the IRS Fresh Start Program 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 must show a 25% decline in income to qualify for certain benefits. The program also considers your current financial situation rather than future earning potential when evaluating your ability to pay. During our consultation, we'll review your specific circumstances to determine which Fresh Start options are available to you. Not everyone qualifies for every program, but most taxpayers with legitimate financial hardship have at least one viable option for relief.

Question 2

Can the IRS Fresh Start Program really reduce my tax debt by 90%?

Accepted Answer

Yes, through an Offer in Compromise, eligible taxpayers can settle their tax debt for significantly less than the full amount owed. However, the actual reduction depends on your specific financial situation and the IRS's determination of your ability to pay. The IRS will generally accept an offer that represents the most they can reasonably expect to collect within a reasonable time period. This calculation considers your income, expenses, assets, and future earning potential. While dramatic reductions are possible, it's important to have realistic expectations. The IRS thoroughly reviews all financial information and requires complete documentation. We'll provide an honest assessment of what reduction amount might be achievable in your specific case.

Question 3

Will the IRS stop collection actions while my Fresh Start application is being processed?

Accepted Answer

Yes, most IRS collection actions pause or stop once you're approved for certain Fresh Start programs like installment agreements, Offers in Compromise, or Currently Not Collectible status. However, collection actions typically continue while your application is being reviewed. This is why it's crucial to act quickly when you receive IRS notices. The sooner we can get your application submitted with proper documentation, the sooner you can potentially stop wage garnishments, bank levies, and other collection activities. If you're already facing immediate collection action, we may be able to request emergency measures to protect your assets while we prepare your Fresh Start application. Time is often critical in these situations.

Question 4

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

Accepted Answer

The timeline varies depending on which Fresh Start option you pursue. Streamlined installment agreements for amounts under $50,000 can often be approved within 30-60 days if all documentation is complete. Offers in Compromise typically take several months to process, sometimes 6-12 months or longer depending on the complexity of your case and IRS workload. Currently Not Collectible status applications usually process more quickly, often within 60-90 days. We work to expedite your case by ensuring all required documentation is submitted correctly the first time. Incomplete applications or missing information can significantly delay the process. Our experience helps us avoid common pitfalls that cause unnecessary delays.

Question 5

What happens if I miss payments on my Fresh Start installment agreement?

Accepted Answer

Missing payments can lead to default of your installment agreement, which reinstates all original collection actions including wage garnishments, bank levies, and asset seizures. The IRS may also assess additional penalties and interest. However, if you contact us immediately when you realize you'll miss a payment, we may be able to modify your agreement or request temporary hardship status. The key is communication before you actually default. We strongly recommend setting up direct debit payments to avoid missed payments. This also helps you qualify for reduced setup fees and makes it easier to get liens withdrawn once you've made three consecutive payments.

Question 6

Do I need a lawyer to apply for the IRS Fresh Start Program?

Accepted Answer

While you can apply for Fresh Start programs yourself, professional representation significantly improves your chances of approval and ensures you get the best possible outcome. The IRS Fresh Start application process involves complex financial calculations, detailed documentation requirements, and specific legal procedures. Mistakes can result in denial, delays, or acceptance of terms that aren't in your best interest. Would you go to court without a lawyer? Of course not. Then why would you go before the IRS without a trusted tax professional? We know exactly what the IRS looks for, how to present your case effectively, and how to negotiate the most favorable terms possible. 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 Lathrop, PA