Question 1

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

Accepted Answer

The reduction depends on your specific financial situation and which program option you qualify for. Through an Offer in Compromise, eligible taxpayers can settle their debt for as little as 10-20% of what they owe - sometimes even less. We've helped Pennsylvania clients reduce six-figure tax debts to just a few thousand dollars.

However, the IRS doesn't just hand out these settlements. You must demonstrate genuine financial hardship and inability to pay the full amount. That's where professional representation becomes crucial - we know exactly how to present your case for maximum debt reduction.

For those who don't qualify for an Offer in Compromise, penalty abatement can still save thousands by removing the crushing penalties that often double your original tax debt. Combined with a reasonable payment plan, this can make your debt manageable even if it's not dramatically reduced.

Question 2

What are the eligibility requirements for the Fresh Start Program?

Accepted Answer

The basic requirements vary by program, but generally you must owe $50,000 or less in combined taxes, penalties, and interest for streamlined options. You also need to be current on all required tax filings - the IRS won't negotiate if you have unfiled returns sitting out there.

For Offers in Compromise, you must demonstrate that paying the full amount would create financial hardship. Self-employed individuals may qualify with a 25% drop in income. The key is showing the IRS that you genuinely cannot pay the full amount without creating severe financial distress.

Most importantly, you must stay compliant going forward. This means filing all future returns on time and paying any taxes owed. The IRS views these programs as a second chance, not a free pass to ignore your obligations. We help ensure you meet all requirements and maintain compliance after your resolution.

Question 3

How long does the Fresh Start Program application process take?

Accepted Answer

Timeline varies significantly based on which program you're applying for and the complexity of your case. Installment agreements can often be approved within 30-60 days, especially for streamlined agreements under $50,000. These are the fastest option for getting immediate relief from collection actions.

Offers in Compromise take longer - typically 6-12 months for the IRS to review and make a decision. However, once you submit a complete application, collection actions generally stop while it's being reviewed. This gives you breathing room and peace of mind during the process.

The key to faster processing is submitting a complete, accurate application the first time. Missing documents or errors can add months to the timeline. That's why professional representation is so valuable - we ensure everything is done right from the start, avoiding delays that could keep you in limbo longer than necessary.

Question 4

Will I still owe money if my Fresh Start application is approved?

Accepted Answer

It depends on which program you're approved for. With an Offer in Compromise, you'll owe only the settled amount - which can be dramatically less than your original debt. Once you pay that amount, your debt is completely resolved and you owe nothing more to the IRS.

With installment agreements, you'll still owe the full amount but can pay it over time with manageable monthly payments. The advantage is stopping collection actions and avoiding additional penalties while you pay down the debt. Interest continues to accrue, but at a much lower rate than the penalties you were facing.

Currently Not Collectible status doesn't eliminate your debt, but it stops all collection while you're experiencing financial hardship. The IRS will review your situation annually, and if your financial condition improves, you may need to resume payments. However, this option provides crucial breathing room when you're facing genuine financial crisis.

Question 5

Can the Fresh Start Program stop IRS wage garnishment immediately?

Accepted Answer

Yes, in most cases. Once you enter into an approved installment agreement or your Offer in Compromise application is accepted for processing, the IRS will typically release wage garnishments and bank levies. This provides immediate relief from the most aggressive collection actions.

However, timing is critical. If you've already received a Final Notice of Intent to Levy, you usually have only 30 days to take action before garnishment begins. Don't wait until the last minute - the earlier you act, the more options you have and the faster we can stop collection actions.

Even if garnishment has already started, we can often get it released quickly once we establish representation and begin the resolution process. The key is acting fast and having professional representation that knows how to navigate IRS procedures efficiently. Every day matters when you're facing active collection.

Question 6

Should I try to handle the Fresh Start Program myself or hire a professional?

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 IRS is the most powerful collection agency in the world, and they have teams of experienced agents whose job is to collect every penny possible.

Professional representation levels the playing field. We know which program gives you the best outcome, how to present your case for maximum debt reduction, and how to avoid the common mistakes that get applications rejected. We also handle all communication with the IRS, so you don't have to deal with aggressive collection agents.

The cost of professional help is typically a fraction of what you'll save through proper representation. More importantly, mistakes in this process can be devastating - rejected applications, continued collection actions, and missed opportunities for debt reduction. When your financial future is on the line, professional expertise isn't just helpful, it's essential.

IRS Fresh Start Program Maplewood, PA