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 Fresh Start option you qualify for. Offers in compromise can reduce debt by 90% or more, but only if you meet strict eligibility requirements and can demonstrate inability to pay the full amount.Most taxpayers benefit more from installment agreements, which don't reduce the debt but make it manageable with payments spread over up to 72 months. Penalty abatement can eliminate thousands in penalties if you have reasonable cause or qualify for first-time relief.The key is getting professional evaluation of your specific case. What works for your neighbor might not work for you, and the IRS will scrutinize every dollar of income and every asset you own before approving significant debt reduction.

Question 2

What are the eligibility requirements for the Fresh Start Program in Pennsylvania?

Accepted Answer

You must owe $50,000 or less in combined taxes, penalties, and interest to qualify for streamlined installment agreements. All required tax returns must be filed and current. You cannot be in an active bankruptcy proceeding.For offers in compromise, the IRS evaluates your income, expenses, and asset equity to determine if you can pay the full amount over time. Self-employed individuals may qualify if they show a 25% or greater income drop.Pennsylvania residents also need to consider state tax compliance. Having unpaid state taxes can complicate federal Fresh Start applications. We coordinate both federal and Pennsylvania Department of Revenue issues to ensure you meet all requirements for maximum relief.

Question 3

How long does the Fresh Start Program application process take?

Accepted Answer

Installment agreements typically process within 30-60 days once complete documentation is submitted. The IRS has streamlined these for qualifying taxpayers, making approval relatively quick.Offers in compromise take much longer—usually 6-12 months or more. The IRS conducts thorough financial investigation, often requesting additional documentation multiple times. They may also require updated financial information if your situation changes during review.Currently not collectible status can be granted relatively quickly if you clearly demonstrate financial hardship. Penalty abatement varies depending on the type of penalty and documentation required. Having professional representation speeds up all processes by ensuring complete, accurate submissions the first time.

Question 4

Will applying for Fresh Start relief stop IRS collection actions immediately?

Accepted Answer

Not automatically, but having professional representation often stops aggressive collection actions quickly. When we establish representation, the IRS must communicate through us instead of harassing you directly.Installment agreement applications typically stop levies and garnishments while under review. Offer in compromise applications also generally halt collection, though the IRS may continue if they believe you're trying to delay legitimate collection efforts.The key is acting quickly once you receive IRS notices. Waiting until wages are already garnished or bank accounts frozen makes the process more complicated. Early intervention with professional representation gives you the strongest protection from collection actions.

Question 5

Can I apply for the Fresh Start Program myself without hiring a tax professional?

Accepted Answer

Yes, you can apply directly with the IRS, but success rates are significantly lower without professional representation. The IRS doesn't provide guidance on which option works best for your situation—they simply process whatever you submit.Tax professionals understand which financial information to emphasize and how to present your case for maximum benefit. We know which documentation the IRS requires and how to avoid common mistakes that lead to automatic rejections.Consider this: would you represent yourself in court? The IRS is essentially a legal proceeding where one mistake can cost you thousands. Professional fees typically pay for themselves through better outcomes and saved time dealing with IRS bureaucracy.

Question 6

What happens if my Fresh Start Program application gets rejected?

Accepted Answer

Rejection isn't the end of the road. Most rejections happen due to incomplete documentation or incorrect financial calculations, both of which can be corrected and resubmitted.For offers in compromise, you have appeal rights if rejected. We can request appeals conferences to present additional evidence or argue why the IRS evaluation was incorrect. Sometimes a rejected offer leads to approval of an installment agreement instead.The worst outcome is doing nothing after rejection. IRS collection actions resume with additional penalties and interest. Having professional representation means we immediately pivot to alternative solutions, ensuring you maintain protection while pursuing the best available option for your situation.

IRS Fresh Start Program Little Meadows, PA