Question 1

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

Accepted Answer

The reduction depends on your financial situation and which program you qualify for. Offers in Compromise can eliminate 90% or more of your debt if the IRS determines you can't pay the full amount. Penalty abatement removes penalties entirely, which often represent 25-50% of your total balance. Installment agreements don't reduce the debt but make it manageable with affordable monthly payments. The key is having a tax professional evaluate your specific situation. What works for your neighbor might not be the best option for you, and the IRS has strict qualification requirements for each program.

Question 2

Will the IRS accept my offer in compromise application?

Accepted Answer

The IRS accepts about 40% of properly prepared Offers in Compromise. The key word is "properly prepared" - most rejections happen because of incomplete financial documentation or unrealistic offer amounts. You must prove you can't pay the full debt through monthly payments or asset liquidation. The IRS uses a specific formula based on your income, necessary expenses, and asset equity to determine the minimum acceptable offer. Professional preparation significantly increases your chances. Tax resolution specialists know exactly what documentation the IRS requires and how to present your financial hardship in the strongest possible light.

Question 3

How long does the Fresh Start Program process take?

Accepted Answer

Simple installment agreements often get approved within 30-60 days. More complex cases like Offers in Compromise typically take 6-12 months from application to final resolution. The timeline depends on several factors: how quickly you provide required documentation, whether the IRS requests additional information, and current processing delays at the IRS office handling your case. During this time, collection activities usually stop once your application is submitted. This means no new levies or garnishments while your case is under review, giving you breathing room to get your finances back on track.

Question 4

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

Accepted Answer

Even if you don't qualify for the most aggressive debt reduction programs, other options exist. Currently-Not-Collectible status provides relief when paying would create financial hardship, though interest continues to accrue. Partial payment installment agreements let you pay less than the full balance over the collection period. After 10 years, any remaining debt gets written off under the statute of limitations. The worst thing you can do is nothing. The IRS has powerful collection tools including wage garnishment, bank levies, and property seizure. Professional representation ensures you explore every available option before facing enforcement action.

Question 5

Can I handle my IRS problem without professional help?

Accepted Answer

You can represent yourself, but it's rarely advisable for significant tax debt. The IRS deals with tax professionals daily and often takes them more seriously than individual taxpayers calling on their own behalf. Tax resolution requires understanding complex IRS procedures, knowing which forms to file, and presenting your financial situation in the most favorable light. One mistake can result in rejection and restart the entire process. Would you go to court without a lawyer? The same logic applies to IRS representation. The stakes are too high and the process too complex to navigate alone when your financial future is on the line.

Question 6

How much does professional tax resolution cost in Pennsylvania?

Accepted Answer

Fees vary based on case complexity, but most firms offer payment plans to make professional help affordable. Simple installment agreement setups might cost $1,000-$2,000, while complex Offers in Compromise can range from $3,000-$7,000. Consider this against the potential savings. If professional representation saves you $20,000 in tax debt, a $5,000 fee represents an excellent return on investment. All County Tax Resolution offers free consultations to discuss pricing upfront. We accept major credit cards (with a 4% convenience fee) and work with clients to structure affordable payment arrangements. The cost of professional help is almost always less than the cost of doing nothing.

IRS Fresh Start Program Laurel Lake, PA