Question 1

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

Accepted Answer

The amount of debt reduction depends on your specific financial situation and which Fresh Start option you qualify for. Some taxpayers see reductions of 90% or more through Offers in Compromise, while others benefit from manageable payment plans that prevent additional penalties and interest from accumulating. For installment agreements, taxpayers owing up to $50,000 can spread payments over up to 72 months, significantly reducing monthly payment amounts. The key is having a qualified tax professional evaluate your case to determine which option provides the maximum benefit for your situation.

Question 2

What are the requirements to qualify for the Fresh Start Program?

Accepted Answer

Qualification requirements vary depending on which Fresh Start option you're pursuing. For streamlined installment agreements, you must owe $50,000 or less and be current on all tax filings. For Offers in Compromise, you need to demonstrate financial hardship and prove you cannot pay the full amount owed. You must also be compliant with all current tax obligations and not be involved in an open bankruptcy proceeding. The IRS will review your income, expenses, assets, and ability to pay when determining eligibility. Having professional representation significantly improves your chances of approval.

Question 3

How long does the Fresh Start Program application process take?

Accepted Answer

The timeline varies depending on which program you apply for and the complexity of your case. Installment agreements can often be approved within 30-60 days, while Offers in Compromise typically take 6-12 months for the IRS to review and make a decision. During the application process, the IRS generally stops collection activities, giving you breathing room while your case is being evaluated. Having all required documentation properly prepared and submitted upfront can significantly speed up the process and improve your chances of approval.

Question 4

Will the Fresh Start Program stop IRS collection actions immediately?

Accepted Answer

Once you submit a properly completed Fresh Start application, the IRS typically suspends most collection activities while reviewing your case. This means they'll stop wage garnishments, bank levies, and other aggressive collection actions during the review period. However, this protection only applies when applications are submitted correctly with all required documentation. If your application is incomplete or rejected, collection activities can resume. That's why working with experienced tax professionals is crucial—we ensure your application is done right the first time.

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 benefits. This includes filing all missing tax returns and being up to date on estimated tax payments if you're self-employed. The good news is that filing missing returns is often the first step toward resolving your tax problems, and it can sometimes reduce the amount you owe due to refunds or credits you weren't claiming. We help clients get caught up on all filings before pursuing Fresh Start options, ensuring they qualify for maximum debt relief.

Question 6

Should I try to handle the Fresh Start Program application myself?

Accepted Answer

While you can technically apply yourself, the success rate is significantly higher with professional representation. The IRS has strict requirements for documentation, financial disclosures, and application procedures. One mistake can result in rejection and resumed collection activities. Would you go to court without a lawyer? Of course not. Then why would you go before the IRS without a trusted tax professional? We know exactly what the IRS looks for in applications, how to present your financial situation in the best light, and how to negotiate the lowest possible settlement. The cost of professional help is typically far less than what you'll save in debt reduction. End the sleepless nights. Call 570-630-0201 or book online today. All County Tax Resolution will stand between you and the IRS, negotiate the lowest legal settlement, and give you the fresh start you deserve.

IRS Fresh Start Program Lenoxville, PA