Question 1

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

Accepted Answer

You may qualify if you owe $50,000 or less in combined taxes, penalties, and interest, and have filed all required tax returns. Self-employed individuals must show a 25% income decline for certain benefits like penalty relief. The IRS evaluates your current financial situation, including income, expenses, assets, and future earning potential. If you can demonstrate genuine financial hardship or inability to pay the full amount, you're likely eligible for at least one Fresh Start option. Our free consultation includes a complete eligibility assessment. We review your specific situation and explain exactly which programs you qualify for, so you know your options before moving forward.

Question 2

What's the difference between Fresh Start and other tax relief programs?

Accepted Answer

The Fresh Start Program isn't a single program—it's a series of IRS policy changes that made existing tax relief options more accessible. These changes include reduced income multipliers for Offers in Compromise, higher thresholds before tax liens are filed, and expanded installment agreement options. Many companies advertise "Fresh Start" as if it's a limited-time offer or special program you need to apply for quickly. That's misleading. Fresh Start represents permanent changes to how the IRS handles tax debt collection, and these benefits are available to qualifying taxpayers anytime. The key difference is that Fresh Start made legitimate tax relief more attainable for middle-class taxpayers who previously wouldn't have qualified under the old, stricter guidelines.

Question 3

How long does the Fresh Start application process take?

Accepted Answer

Timeline varies depending on which Fresh Start option you're pursuing. Installment agreements typically process within 30-60 days once all paperwork is submitted. Offers in Compromise take longer—usually 6-12 months for the IRS to make a determination. Currently Not Collectible status can be granted relatively quickly, sometimes within weeks, if you provide complete financial documentation. Penalty abatement requests are often resolved within 30-90 days. The most important factor affecting timeline is having complete, accurate documentation from the start. We ensure all paperwork is properly prepared and submitted, which helps avoid delays from missing information or IRS requests for additional documentation.

Question 4

Can the IRS still garnish my wages while my Fresh Start application is pending?

Accepted Answer

Generally, the IRS will not initiate new collection actions while your Fresh Start application is being processed, but this isn't automatic. You need to be current on any existing installment agreement and continue filing required tax returns. If you're applying for an Offer in Compromise, the IRS typically suspends collection activities during the evaluation period. However, if your application is rejected and you don't appeal within 30 days, collection actions can resume immediately. For Currently Not Collectible status, collection activities stop once approved. The key is getting your application submitted properly and quickly. Every day you wait is another day the IRS can take collection action, including wage garnishment, bank levies, or asset seizure.

Question 5

What happens if my Offer in Compromise is rejected?

Accepted Answer

If your Offer in Compromise is rejected, you have 30 days to appeal the decision through the IRS Independent Office of Appeals. The appeals process gives you another chance to present your case, often with additional documentation or clarification. During the appeal period, collection activities remain suspended. If the appeal is also unsuccessful, you can still pursue other Fresh Start options like installment agreements or Currently Not Collectible status. Having professional representation significantly improves your chances of success, both in the initial application and appeals process. We know what the IRS looks for in successful offers and how to present your financial information in the most favorable light while remaining completely truthful.

Question 6

Are there any upfront costs for Fresh Start Program applications?

Accepted Answer

The IRS charges application fees for certain Fresh Start options. Offers in Compromise require a $205 application fee plus an initial payment toward your proposed settlement amount. However, low-income taxpayers may qualify for fee waivers. Installment agreements have setup fees ranging from $31-$225 depending on the payment method and your income level. Currently Not Collectible applications and most penalty abatement requests don't require IRS fees. At All County Tax Resolution, we never charge upfront fees for our services. You only pay after we've evaluated your case and you've decided to move forward. We believe you shouldn't have to pay for help before knowing if we can actually help you resolve your tax problems.

IRS Fresh Start Program Ledgedale, PA