Question 1

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

Accepted Answer

The reduction depends on your financial situation and which program you qualify for. Offer in Compromise can reduce debt by 90% or more - we've seen clients settle $30,000 debts for $200. Penalty abatement can eliminate thousands in late-filing and late-payment penalties. Currently Not Collectible status doesn't reduce the debt but stops all collection actions, giving you time to rebuild. The key is qualifying properly - the IRS rejects most applications because they're prepared incorrectly. That's why professional representation matters. We know exactly how to present your financial information to maximize your chances of approval and minimize what you pay.

Question 2

Will the IRS really stop trying to collect from me during this process?

Accepted Answer

Yes, but only when the paperwork is filed correctly and completely. Once we submit your Fresh Start application, IRS collection activities must stop while they review your case. This includes wage garnishments, bank levies, and asset seizures. However, this protection only applies to properly submitted applications. If forms are incomplete or filed incorrectly, the IRS continues collections and may even accelerate them. This is why attempting Fresh Start applications without professional help often backfires. We ensure every form is perfect before submission, and we monitor your case to guarantee collection protections remain in place throughout the entire process.

Question 3

What if I owe more than $50,000 to the IRS?

Accepted Answer

You still have options, but the process becomes more complex. The $50,000 threshold applies to streamlined installment agreements, which are the simplest payment plans. Above this amount, the IRS requires detailed financial statements and more scrutiny. For larger debts, Offer in Compromise becomes more attractive because it can eliminate the entire balance regardless of size. We've successfully negotiated settlements for clients owing six figures, reducing their debt to manageable amounts. The key is proving to the IRS that you cannot pay the full amount within the collection statute period. This requires sophisticated financial analysis and expert negotiation - not something to attempt alone.

Question 4

How long does the IRS Fresh Start Program process take?

Accepted Answer

Timeline varies by program type and case complexity. Penalty abatement can be resolved in 30-60 days. Currently Not Collectible status typically takes 60-90 days. Installment agreements usually process within 90 days. Offer in Compromise takes the longest - typically 6-18 months because the IRS thoroughly investigates your financial situation. However, collection activities stop once we file, so you're protected during this entire period. We provide regular updates throughout the process and handle all IRS communications. You'll never wonder what's happening with your case because we keep you informed every step of the way.

Question 5

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

Accepted Answer

No - you must be current on all required tax filings before applying for any Fresh Start Program. This is a strict IRS requirement with no exceptions. Unfiled returns actually increase your total debt because the IRS estimates what you owe, and they're never generous. We handle unfiled returns as part of our service, often reducing the IRS's estimated liability significantly. Once returns are filed and processed, we can pursue Fresh Start options immediately. Filing missing returns also stops the IRS from filing substitute returns that maximize your liability. In many cases, properly prepared returns show you owe far less than the IRS estimated, giving you a better starting position for negotiations.

Question 6

What happens if the IRS rejects my Fresh Start application?

Accepted Answer

Rejection isn't the end - it's often the beginning of serious negotiation. Most initial applications get rejected because the IRS wants more information or disagrees with your financial analysis. This is normal and expected in complex cases. We immediately appeal rejections and provide additional documentation to address IRS concerns. Many successful cases start with initial rejections because it forces both sides to examine the situation more thoroughly. If all Fresh Start options are exhausted, we explore alternatives like bankruptcy discharge for older tax debts or negotiating partial payment installment agreements. There's always a path forward - the key is having experienced representation that doesn't give up after the first "no."

IRS Fresh Start Program Lehigh, PA