Question 1

Do I qualify for the IRS Fresh Start Program in Pennsylvania?

Accepted Answer

You may qualify if you owe $50,000 or less in combined taxes, penalties, and interest, and you're current on all required tax filings. You must also demonstrate financial hardship or inability to pay the full amount without economic strain.Self-employed individuals in Louden Hill can qualify with a 25% or greater drop in income. The key is having all your tax returns filed—the IRS won't grant Fresh Start relief to anyone with unfiled returns. We determine your exact eligibility during our free consultation by reviewing your complete tax situation.

Question 2

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

Accepted Answer

The reduction depends on which program you qualify for and your specific financial circumstances. Penalty Abatement can eliminate thousands in penalties, often reducing your debt by 25-50%. An Offer in Compromise can settle your entire debt for 10-20% of what you owe if you meet the strict eligibility requirements.Installment Agreements don't reduce the debt but make it manageable with payments as low as $25 monthly. The IRS has also increased the tax lien threshold to $10,000, meaning fewer Pennsylvania taxpayers face liens on their credit reports. We analyze your situation to determine which option provides maximum savings.

Question 3

Will the IRS stop collection actions during Fresh Start negotiations?

Accepted Answer

Yes, most collection actions pause or stop once you're approved for Fresh Start programs. If you're accepted for an Offer in Compromise, installment agreement, or Currently Not Collectible status, wage garnishments and bank levies typically cease.However, collection protection only applies after approval—the IRS can continue aggressive actions while your application is pending. That's why professional representation is crucial. We know how to expedite the process and protect you during negotiations. Missing payments or failing to comply with agreement terms can restart collection actions immediately.

Question 4

How long does the Fresh Start Program application process take?

Accepted Answer

Timeline varies by program type and complexity of your case. Streamlined Installment Agreements for debts under $50,000 can be approved within 30-60 days with minimal documentation. Penalty Abatement requests typically take 60-90 days for IRS review.Offers in Compromise take the longest—usually 6-12 months for complete processing. The IRS requires extensive financial documentation and thorough review of your ability to pay. Currently Not Collectible status can provide immediate relief while other programs are pending. We track your case progress and handle all IRS communications to prevent delays.

Question 5

What happens if I miss payments on my Fresh Start agreement?

Accepted Answer

Missing payments can lead to default, causing penalties to be reinstated, collection actions to resume, or agreements to be canceled entirely. The IRS typically allows one missed payment before taking action, but subsequent misses result in immediate default.That's why we recommend direct debit payments—they prevent missed payments and often qualify you for better terms. If you're struggling with payments, contact us immediately. We can often renegotiate terms or request temporary hardship status before you default. Once an agreement is canceled, it's much harder to get a second chance.

Question 6

Can I apply for Fresh Start relief myself, or do I need professional help?

Accepted Answer

While you can apply yourself, professional representation dramatically increases your success rate. Tax professionals achieve acceptance rates up to five times higher than self-represented taxpayers—especially for Offers in Compromise, where only 26% of applications are accepted nationally.The IRS forms are complex, and one mistake can result in rejection or worse terms. We know exactly which programs you qualify for, how to present your financial information for maximum benefit, and how to avoid common pitfalls that disqualify applications. Professional representation also means the IRS deals with us, not you, eliminating stressful phone calls and correspondence.

IRS Fresh Start Program Louden Hill, PA