Question 1

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

Accepted Answer

The reduction depends on your specific financial situation, but eligible taxpayers can often reduce their debt by 90% or more through an Offer in Compromise. The IRS will accept whatever they determine you can realistically pay based on your income, expenses, and assets. For example, if you owe $50,000 but can only afford $200 monthly payments, you might qualify for a significantly reduced settlement. The key is proving to the IRS that collecting the full amount would create genuine financial hardship. We analyze your entire financial picture to determine the lowest amount the IRS will likely accept.

Question 2

What if I owe more than $50,000 to the IRS?

Accepted Answer

You still have options even with larger tax debts. While the streamlined installment agreements cap at $50,000, we can negotiate longer-term payment plans for higher amounts. Offers in Compromise have no debt limit if you qualify based on financial hardship. We've successfully resolved cases involving six-figure tax debts through combination strategies. Sometimes it involves partial payment agreements, other times Currently Not Collectible status followed by an eventual settlement. The IRS would rather collect something than nothing, so there's almost always a path forward regardless of the amount owed.

Question 3

How long does the Fresh Start Program application process take?

Accepted Answer

Timeline varies by program type, but most applications take 6-12 months for final resolution. Installment agreements are typically approved within 30-60 days if properly submitted. Offers in Compromise take longer—usually 8-12 months—because the IRS conducts thorough financial analysis. During this time, collection activities are generally suspended, giving you breathing room from levies and garnishments. We handle all communications and keep you updated throughout the process. The key is submitting complete, accurate applications the first time to avoid delays and rejections that restart the clock.

Question 4

Will the Fresh Start Program stop IRS collection actions immediately?

Accepted Answer

Yes, in most cases. Once we submit your application for installment agreements or Offers in Compromise, the IRS typically suspends collection activities like wage garnishments and bank levies. This protection continues while your application is under review. However, the IRS can still file tax liens during this period, though the Fresh Start Program has raised the threshold to $10,000 before liens are typically filed. If you're facing immediate collection action, we can often get emergency stays while preparing your application. The sooner you act, the more protection you'll have.

Question 5

What happens if my financial situation changes after approval?

Accepted Answer

The IRS monitors compliance with Fresh Start agreements, especially for Offers in Compromise and longer-term installment plans. If your income increases significantly, they may want to modify your payment terms. If it decreases, you can request adjustments. We help clients navigate these changes and communicate with the IRS when modifications are needed. The key is staying current with your agreed payments and filing all future tax returns on time. As long as you meet these requirements, your Fresh Start agreement remains in effect until your debt is resolved.

Question 6

Do I really need professional help, or can I apply myself?

Accepted Answer

While you can apply directly to the IRS, the rejection rate for self-prepared applications is extremely high. The IRS has voluminous rules for each program, and one mistake means automatic rejection. Most people don't know how to properly calculate their reasonable collection potential or present their case effectively. We've seen countless cases where people tried the DIY approach, got rejected, and then came to us after wasting months or years. Would you go to court without a lawyer? The same principle applies here. Professional representation dramatically increases your chances of approval and getting the best possible terms from the IRS.

IRS Fresh Start Program Manchester, PA