Question 1

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

Accepted Answer

The reduction depends on which program you qualify for and your specific financial situation. Offers in Compromise can reduce debt by 90% or more for qualifying taxpayers - sometimes even achieving 100% forgiveness in extreme hardship cases. Penalty Abatement typically removes 25-40% of your total debt since penalties often make up a significant portion of what you owe. Even if you don't qualify for debt reduction, installment agreements can stop penalties and interest from continuing to grow. The Fresh Start Program expanded eligibility requirements in recent years, making it easier for middle-income taxpayers to qualify for relief. A thorough financial analysis determines which option offers the most savings for your specific situation.

Question 2

What's the difference between doing this myself versus hiring a professional?

Accepted Answer

The IRS accepts less than 25% of Offer in Compromise applications submitted by taxpayers representing themselves. Professional representation dramatically improves your chances of approval and typically results in better settlement terms. Tax professionals know which financial information to emphasize and how to present your case in the most favorable light. We also handle all IRS communication, protecting you from aggressive collection tactics during the negotiation process. Would you go to court without a lawyer? The IRS is essentially a legal proceeding where one mistake can cost you thousands. Professional representation pays for itself through better outcomes and peace of mind.

Question 3

How long does the Fresh Start Program application process take?

Accepted Answer

Most Fresh Start applications are resolved within 3-6 months, though complex cases involving multiple tax years or business debt can take longer. The timeline depends partly on how quickly you can gather required financial documentation. Installment Agreements typically process fastest - often within 30-60 days for straightforward cases. Offers in Compromise take longer because the IRS thoroughly reviews your financial situation and asset values. During the application process, the IRS typically suspends collection activities. This means no new liens, levies, or garnishments while your case is under review - giving you breathing room to resolve the situation properly.

Question 4

Will I qualify for the Fresh Start Program with my income level?

Accepted Answer

The Fresh Start Program expanded income thresholds significantly, making relief available to more middle-class taxpayers than ever before. For Offers in Compromise, qualification depends on your total financial picture - income, necessary expenses, and asset equity. If you can't pay your full tax debt without creating financial hardship, you likely have options. The IRS considers your reasonable living expenses, including housing, transportation, food, and medical costs when evaluating your case. Even high earners can qualify if they have significant necessary expenses or limited asset equity. The key is presenting your financial situation accurately and knowing which expenses the IRS considers "allowable" in their calculations.

Question 5

What happens if the IRS rejects my Fresh Start application?

Accepted Answer

Rejection doesn't end your options - it often means the application wasn't presented properly or additional documentation is needed. Experienced tax professionals know how to address IRS objections and resubmit stronger applications. Sometimes the IRS rejects an Offer in Compromise but approves an installment agreement instead. Other times, they request additional financial information or want to see recent tax compliance before reconsidering. Appeals are available for most IRS decisions, and many initially rejected cases succeed on appeal with proper representation. The worst outcome is usually ending up back where you started - but with better understanding of your actual options.

Question 6

How much does professional tax resolution help cost in Pennsylvania?

Accepted Answer

All County Tax Resolution offers free initial consultations to evaluate your case and explain your options with no obligation. If you decide to move forward, we offer payment plans to make professional help affordable. Most clients find that professional representation pays for itself through better settlement terms and faster resolution. The cost of doing nothing - continued penalties, interest, and potential asset seizure - far exceeds the investment in proper representation. We accept major credit cards with a 4% convenience fee and work with clients to structure payments that fit their budget. When you're dealing with serious tax debt, professional help isn't an expense - it's an investment in your financial future.

IRS Fresh Start Program Lenox, PA