Question 1

How do I know if I qualify for the IRS Fresh Start Program?

Accepted Answer

You may qualify if you owe $50,000 or less in taxes, penalties, and interest, are current on all required tax filings, and can demonstrate financial hardship or inability to pay the debt in full without economic strain. Self-employed individuals may qualify if they show a 25% or more drop in income. The key is being realistic about your financial situation. If you can afford to pay your full tax debt over time without creating genuine hardship, the IRS probably won't approve significant relief. But if making full payments would prevent you from covering basic living expenses or keeping your business running, you likely have options. We review your complete financial picture during our free consultation - income, expenses, assets, and debts. This tells us which Fresh Start options make sense for your specific situation and gives you realistic expectations about potential outcomes.

Question 2

Will the IRS stop trying to collect from me while my case is pending?

Accepted Answer

Yes, if you're approved for an Offer in Compromise, installment agreement, or hardship status (Currently Not Collectible), most collection actions like wage garnishments or bank levies pause or stop. However, this protection only kicks in once your application is properly submitted and accepted for processing. The IRS won't automatically stop collection just because you're thinking about applying or have contacted a tax professional. You need to actually get into an approved program. This is why acting quickly is so important - every day you wait is another day the IRS can take collection action. Once you're in an approved payment plan, you'll have breathing room to get back on your feet. But you must stay current on your agreement terms and future tax obligations. Missing payments or falling behind on new taxes can void your agreement and restart aggressive collection.

Question 3

How long does the Fresh Start Program application process take?

Accepted Answer

The process can take several months, especially for Offers in Compromise. Simple installment agreements might be approved in 30-60 days if your paperwork is complete and accurate. More complex cases involving financial hardship determinations or settlement negotiations can take 6-12 months or longer. The timeline depends largely on how well your case is prepared upfront. Providing inaccurate financial disclosures can lead to rejected applications, which means starting over and losing months of time. This is why professional preparation matters - we make sure everything is documented correctly the first time. During the review period, it's crucial to stay compliant with current tax obligations. The IRS will not grant relief to individuals who have unfiled tax returns, and falling behind on new taxes while your case is pending can derail the entire process.

Question 4

What happens if my Offer in Compromise gets rejected?

Accepted Answer

Acceptance is not guaranteed - each application is evaluated on its merits, considering income, expenses, and asset equity. If your initial offer is rejected, you have the right to appeal the decision or submit a revised offer with additional supporting documentation. Many rejections happen because the IRS believes you can afford to pay more than you offered, either through higher monthly payments or by liquidating assets. Sometimes it's a documentation issue - missing forms, incomplete financial statements, or unrealistic expense claims. The good news is rejection doesn't mean you're out of options. You might still qualify for an installment agreement, penalty abatement, or Currently Not Collectible status. We analyze why your offer was rejected and determine the best next step based on your specific circumstances and financial capacity.

Question 5

Can I negotiate with the IRS myself instead of hiring help?

Accepted Answer

You have the legal right to represent yourself with the IRS, but the IRS is the most powerful collection agency in the world and it can be very intimidating and frustrating to deal with them on your own. Many taxpayers miss out on relief simply because they don't understand the process. The Fresh Start Program has specific forms, deadlines, and financial documentation requirements. Required forms may include IRS Form 9465, Form 433-A, or Form 656, depending on which relief option you're pursuing. One mistake can delay your case by months or result in rejection. Professional representation also provides a buffer between you and the IRS. We handle all communication, negotiate on your behalf, and know which IRS employees to contact for faster resolution. Most importantly, we understand how to present your financial situation to maximize your chances of approval.

Question 6

What if I owe both federal and Pennsylvania state taxes?

Accepted Answer

The IRS Fresh Start Program only addresses federal tax debt, but Pennsylvania has its own relief programs for state tax obligations. With Pennsylvania's flat 3.07% income tax plus local earned income taxes that can reach nearly 4% in some areas, combined tax debt can quickly become overwhelming. We help coordinate both federal and state tax resolution strategies. Sometimes resolving your federal debt first gives you more cash flow to handle state obligations. Other times, it makes sense to negotiate both simultaneously to create one comprehensive payment plan that fits your budget. Pennsylvania's Department of Revenue offers installment agreements and hardship programs similar to federal options. The key is creating a total tax resolution strategy that addresses all your obligations without setting you up for future compliance problems. We make sure your payment plan is realistic and sustainable long-term.

IRS Fresh Start Program Lymanville, PA