Question 1

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

Accepted Answer

Eligible taxpayers often see reductions of 90% or more through the Offer in Compromise program. The exact amount depends on your monthly income, necessary living expenses, and asset values. If you're living paycheck to paycheck or facing financial hardship, you might qualify for massive debt reduction. The IRS uses a specific formula called "reasonable collection potential" to calculate what you can realistically pay. If that amount is significantly less than what you owe, they'll often accept the lower payment as settlement in full. We've helped Long Pond clients with $50,000 in tax debt settle for $5,000 or less when their financial situation qualified them for maximum relief. The key is proving you genuinely can't pay the full amount without creating financial hardship. This requires detailed documentation of your income, expenses, and assets - which is why professional help makes such a difference in getting approved.

Question 2

What's the difference between an installment agreement and offer in compromise?

Accepted Answer

An installment agreement means you pay your full tax debt over time in manageable monthly payments. The Fresh Start Program allows streamlined agreements for debts up to $50,000 with payment terms up to 72 months. You still owe the original amount plus interest, but you avoid collection actions and get affordable monthly payments. An offer in compromise actually reduces the total amount you owe. Instead of paying $30,000 over six years, you might pay $5,000 upfront and the IRS considers your debt completely settled forever. This option requires proving financial hardship or that collecting the full amount would prevent you from meeting basic living expenses. Most people prefer the offer in compromise because it saves more money long-term, but not everyone qualifies based on their income and assets. We evaluate both options during your free consultation to determine which approach saves you the most money while fitting your financial situation.

Question 3

Will the IRS Fresh Start Program stop wage garnishments and bank levies immediately?

Accepted Answer

Yes, submitting a Fresh Start Program application typically triggers an automatic hold on most IRS collection actions while your case is being processed. This includes wage garnishments, bank levies, and asset seizures. The IRS generally won't take new collection action while you're actively working toward a resolution. If you currently have an active wage garnishment taking money from your paycheck, we can often get it released within days of submitting your application. Bank levies usually get lifted once the IRS sees you're serious about resolving your debt through official channels. Once you're approved for an installment agreement or offer in compromise, the collection actions stop permanently as long as you stick to the agreement terms. The key is acting quickly - the longer you wait, the more aggressive the IRS becomes. But once we get your case into the Fresh Start Program pipeline, you get immediate protection from further collection efforts.

Question 4

How long does the IRS Fresh Start Program application process typically take?

Accepted Answer

Processing times vary depending on which Fresh Start option you choose. Streamlined installment agreements for debts under $50,000 often get approved in 30-45 days because they require minimal financial documentation and qualify for expedited processing. Offers in compromise take longer - usually 6-12 months - because the IRS conducts a thorough review of your entire financial situation. They verify your income, expenses, asset values, and ability to pay before accepting a reduced settlement amount. Currently-Not-Collectible status can be approved within 2-4 weeks if you're facing genuine financial hardship with proper documentation. Penalty abatement requests usually get resolved within 60 days. The good news is that collection actions typically stop while your application is pending, so you get immediate relief even before final approval. We track every deadline and follow up aggressively to keep your case moving forward as quickly as possible.

Question 5

What happens if I don't qualify for the main Fresh Start Program benefits?

Accepted Answer

Even if you don't qualify for the primary Fresh Start Program options, we still have multiple strategies to reduce your tax burden and stop collection actions. We can negotiate partial payment installment agreements, request Currently-Not-Collectible status based on financial hardship, or pursue penalty abatement to eliminate thousands in fees and interest charges. Sometimes clients don't qualify today but will qualify in six months after their financial situation changes - like reduced income, increased expenses, or asset value changes. We help you understand exactly what needs to happen and create a strategic plan to position you for maximum relief when the time is right. The worst mistake is doing nothing while penalties and interest compound monthly. The IRS has incredible collection powers that only get stronger over time. Even if the Fresh Start Program isn't perfect for your current situation, we can usually find ways to reduce what you owe, stop the bleeding, and protect your assets while we work toward a better long-term solution.

Question 6

Should I try to handle my Fresh Start Program application myself or hire professionals?

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 eligibility requirements and complex financial disclosure forms that must be completed perfectly the first time. One mistake on your asset valuation or expense documentation can disqualify you from programs that could save you tens of thousands of dollars. The IRS doesn't give do-overs if you mess up the initial application. Professional representation ensures everything gets filed correctly and maximizes your chances of getting approved for maximum debt reduction. We also handle all communication with IRS agents, so you never have to deal with their collection department directly. Our clients consistently get better settlement offers because we know exactly what documentation the IRS requires and how to present your case for optimal results. End the sleepless nights. Call 570-630-0201 or text 570-470-5228 today. We will stand between you and the IRS, negotiate the lowest legal settlement, and give you the fresh start you deserve.

IRS Fresh Start Program Long Pond, PA