Question 1

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

Accepted Answer

You may qualify for the 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 without significant economic strain. Self-employed individuals may also qualify if they've experienced a 25% or more drop in income. The key is proving to the IRS that paying your tax debt in full would create genuine financial hardship. We evaluate factors like your monthly income, necessary living expenses, asset values, and overall financial condition to determine which Fresh Start options give you the best chance of approval. During your free consultation, we'll review your specific situation and tell you exactly which programs you're likely to qualify for and what kind of relief you can expect.

Question 2

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

Accepted Answer

An installment agreement lets you pay off your full tax debt over time through monthly payments, typically spanning up to 72 months for debts under $50,000. You'll still pay the complete amount you owe, but with manageable monthly payments that fit your budget. Interest continues to accrue, but penalties stop once the agreement is approved. An Offer in Compromise allows you to settle your tax debt for less than the full amount owed—sometimes significantly less. However, the IRS only approves these when they believe the offer represents the most they can realistically collect from you. The approval process is more complex and requires extensive financial documentation. We help you understand which option makes more sense based on your financial situation. Sometimes an installment agreement is the practical choice, while other times fighting for an Offer in Compromise could save you tens of thousands of dollars.

Question 3

How long does the Fresh Start Program application process take?

Accepted Answer

The timeline varies depending on which Fresh Start option you're pursuing and the complexity of your case. Streamlined installment agreements for debts under $50,000 can often be approved within 30-60 days since they require minimal financial documentation and have simplified approval processes. Offer in Compromise applications typically take 6-12 months for the IRS to review, as they require extensive financial analysis and documentation. However, once you submit your application with the required initial payment, the IRS generally suspends collection activities while they review your case. The key is getting started immediately. Every month you wait, penalties and interest continue to accumulate on your tax debt. We can often stop collection actions quickly by filing the appropriate paperwork, giving you immediate relief while we work on your long-term solution.

Question 4

Will the Fresh Start Program stop IRS collection actions against me?

Accepted Answer

Yes, in most cases, properly filing for Fresh Start Program relief will halt IRS collection activities. Once we submit your installment agreement application or Offer in Compromise with the required documentation and payments, the IRS typically suspends wage garnishments, bank levies, and other collection actions while they review your case. However, this protection isn't automatic—it requires filing the correct paperwork in the proper format with all required supporting documents. This is why professional representation is crucial. One mistake or missing document could mean continued collection activities while your application sits in bureaucratic limbo. We ensure your application is complete and properly submitted to trigger these collection protections as quickly as possible. In urgent situations where you're facing immediate wage garnishment or bank levy, we can often secure emergency collection holds while preparing your formal Fresh Start application.

Question 5

What happens if the IRS rejects my Fresh Start application?

Accepted Answer

IRS rejection doesn't mean you're out of options. If your initial application is denied, you have the right to appeal the decision or explore alternative relief programs. We analyze the rejection reasons and determine whether an appeal makes sense or if a different approach would be more effective. Sometimes a rejection occurs due to incomplete financial information or because your financial situation has changed since filing. In these cases, we can resubmit with updated documentation. Other times, we might pivot to a different Fresh Start option that better fits your circumstances. The IRS also offers programs beyond Fresh Start, including Currently Not Collectible status for those experiencing severe financial hardship, partial payment installment agreements, and various penalty abatement programs. Our job is ensuring you get the best possible resolution, even if it requires multiple attempts or alternative strategies.

Question 6

Should I try to handle my IRS Fresh Start application myself?

Accepted Answer

Would you go to court without a lawyer? Of course not! Then why would you go before the IRS without a trusted tax professional? The Fresh Start Program has strict requirements, complex paperwork, and specific procedures that must be followed exactly. One mistake can result in rejection, continued collection activities, and months of additional penalties and interest. The IRS approves only a small percentage of Offer in Compromise applications submitted by taxpayers without professional representation. Tax professionals understand how to present your financial information in the most favorable light, which supporting documents to include, and how to structure your offer for maximum chance of acceptance. Beyond the paperwork, we serve as your advocate throughout the process. When the IRS has questions or requests additional information, we handle all communications and negotiations on your behalf. This protects you from saying something that could hurt your case and ensures you get the best possible outcome. Call 570-630-0201 or text 570-470-5228 to get started today.

IRS Fresh Start Program Lehman, PA