Question 1

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

Accepted Answer

Eligible taxpayers may reduce 90% or more of what they owe through the program, and some qualify for complete debt forgiveness through an Offer in Compromise. The exact reduction depends on your financial hardship, ability to pay, and specific circumstances. For example, if you owe $50,000 but can only afford $200 monthly payments, the IRS might accept a significantly lower lump sum settlement. The key is proving you genuinely cannot pay the full amount without creating undue financial hardship for your family. Every case is different, which is why the free consultation matters so much. We review your income, expenses, assets, and future earning potential to determine exactly what tax relief options you qualify for under current IRS guidelines.

Question 2

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

Accepted Answer

An installment plan lets you pay your full tax debt over time in manageable monthly payments. Updated IRS rules let taxpayers owing up to $50,000 enter streamlined installment plans without extensive financial documentation or lengthy approval processes. An Offer in Compromise is completely different - it's when the IRS agrees to accept less than you actually owe as full payment. You could qualify for 100% debt forgiveness if you meet specific criteria for financial hardship or doubt about your ability to ever pay the full amount. We determine which option gives you the best long-term outcome. Sometimes combining both strategies works best - negotiating a lower settlement amount through an OIC, then paying it through a manageable installment agreement.

Question 3

How long does the IRS Fresh Start Program process take in Pennsylvania?

Accepted Answer

Simple installment agreements can be approved within 30-60 days once all documentation is submitted. More complex cases involving Offers in Compromise typically take 6-12 months for the IRS to process and make a final determination. Tax law experts urge swift action because delays result in additional penalties and interest charges. The sooner you start the process, the sooner you stop accumulating more debt on top of what you already owe. During this time, the IRS typically stops aggressive collection activities like wage garnishments and bank levies. You get breathing room to resolve the situation properly instead of dealing with constant pressure and threats from IRS collection agents.

Question 4

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

Accepted Answer

Yes, once you're accepted into most Fresh Start Program options, the IRS typically releases existing wage garnishments and stops bank levies. This happens because you're now in compliance and making documented progress toward resolving your debt. Taxpayers can request lien withdrawals once balances fall below $25,000, which helps restore your credit score and removes the public record of your tax problems. This is crucial for Lords Valley, PA residents trying to buy homes, start businesses, or secure financing. The key is getting accepted into the program quickly before more aggressive collection actions escalate. Once the IRS sees you're serious about resolving the debt through official channels, they typically back off the heavy-handed collection tactics.

Question 5

Do I need to file missing tax returns before applying for Fresh Start?

Accepted Answer

Yes, the IRS requires current filing compliance before approving most Fresh Start Program applications. Tax law experts recommend filing all missing returns, gathering complete financial documentation, and choosing the right relief option before submitting any applications. This sounds overwhelming, but we handle the entire process for you. We prepare and file all missing returns, calculate exactly what you owe including penalties and interest, and ensure everything is properly documented before submitting your application. Filing missing returns often reveals you don't owe as much as you feared. Sometimes you're actually entitled to refunds that reduce your overall debt significantly. We make sure you get credit for every deduction, payment, and withholding you're legally entitled to claim.

Question 6

What happens if the IRS rejects my Fresh Start application?

Accepted Answer

Professional representation dramatically reduces rejection rates because experienced tax professionals know exactly what documentation the IRS requires and how to present your financial case effectively. We don't submit applications unless we're confident about approval based on current IRS guidelines. If the IRS does request additional information or raises concerns about your application, we handle all communication and provide whatever documentation is needed to address their questions. Most "rejections" are actually requests for clarification that get resolved quickly with proper representation. As a backup option, you still have alternatives like Currently-Not-Collectible status if you're facing genuine financial hardship that prevents any payment. The goal is finding some form of tax debt relief that stops the collection pressure and gives you a manageable path forward toward financial freedom.

IRS Fresh Start Program Lords Valley, PA