Question 1

How do I know if I qualify for the IRS Fresh Start Program in Lawton, PA?

Accepted Answer

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 without economic strain. Self-employed individuals who've experienced a 25% or more drop in income often qualify for additional consideration under the fresh start initiative. The IRS evaluates your entire financial picture - monthly income, necessary living expenses, assets, and future earning potential. They want to collect what you can reasonably afford to pay, not force you into financial ruin. In rural Pennsylvania communities, they consider local economic conditions and median income levels. During our free consultation, we review your specific situation against the program requirements. We'll tell you honestly whether you're likely to qualify and which tax debt relief options make the most sense for your circumstances.

Question 2

What's the difference between an Offer in Compromise and installment agreement?

Accepted Answer

An Offer in Compromise actually reduces the total amount you owe to the IRS, sometimes dramatically. If approved, you pay the agreed-upon settlement amount and the remaining debt is completely forgiven. This tax forgiveness program works best when you can prove you'll never be able to pay the full amount due to financial hardship. Installment agreements let you pay the full debt over time without reducing the balance. However, they stop penalties and collection actions while you're making payments. Some taxpayers qualify for streamlined agreements that don't require extensive financial documentation. You can get up to 72 months to pay on debts under $50,000. The right choice depends on your financial situation. If you have assets or income potential that could eventually pay the full debt, a payment plan might be more appropriate. If your financial situation makes full payment genuinely impossible, an Offer in Compromise could provide real debt relief.

Question 3

Will the IRS accept my Fresh Start Program application?

Accepted Answer

The IRS approves applications that are properly prepared and accurately reflect your financial reality. This is where professional representation makes a crucial difference - we know exactly how to present your information to maximize approval chances and avoid common rejection triggers. Common rejection reasons include incomplete paperwork, unrealistic offers that don't reflect your actual ability to pay, missing financial documentation, or calculation errors. The IRS also rejects applications from taxpayers who haven't filed all required returns or who are currently in bankruptcy proceedings. With professional preparation, your chances improve significantly. We ensure all forms are completed correctly, supporting documentation is thorough, and your offer reflects what the IRS considers reasonable based on their collection standards. We've seen too many people get rejected for preventable mistakes that professional representation could have avoided.

Question 4

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

Accepted Answer

The timeline varies depending on which tax relief program you're applying for and how quickly you provide required documentation. Streamlined installment agreements can be approved within 30-60 days, while Offers in Compromise typically take 6-12 months for the IRS to review and make a determination. During the application process, the IRS generally suspends collection activities, giving you breathing room from wage garnishments, bank levies, or asset seizures. However, interest continues to accrue on your debt, so faster resolution saves money in the long run. We work to expedite the process by submitting complete, accurate applications the first time. When the IRS requests additional information, we respond promptly to avoid unnecessary delays. Throughout the process, we keep you informed about progress and next steps so you're never left wondering what's happening with your case.

Question 5

What happens if my tax debt relief application gets rejected?

Accepted Answer

If your initial application is rejected, you have appeal rights that must be exercised within 30 days of receiving the rejection notice. Many rejections can be successfully appealed with additional documentation or by addressing the IRS's specific concerns about your financial situation. Sometimes rejection happens because your financial circumstances have changed since you applied, or because the IRS needs clarification about certain aspects of your finances. We analyze the rejection letter carefully to understand exactly why the application was denied and develop a strategy to address those issues. The good news is that rejection doesn't prevent you from reapplying later if your circumstances change. We often see taxpayers who were initially rejected get approved on appeal or reapplication once we properly address the IRS's concerns and provide the documentation they need.

Question 6

Can I apply for Fresh Start if I haven't filed all my tax returns?

Accepted Answer

No, you must be current on all required tax filings before the IRS will consider any Fresh Start Program application. This includes personal income tax returns and, if you're self-employed, estimated tax payments for the current year. The IRS requires tax compliance before offering any debt relief programs. Filing missing returns is actually the first step in any tax resolution process. The IRS needs to know your complete tax situation before they can evaluate what you realistically owe and what you can afford to pay. Unfiled returns also continue generating penalties and interest. We help clients get caught up on unfiled returns as part of our comprehensive tax resolution service. Once all returns are filed and processed, we can move forward with Fresh Start Program applications. This preparation work is crucial - trying to skip this step only delays real resolution and can make your tax situation significantly worse.

IRS Fresh Start Program Lawton, PA