Question 1

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

Accepted Answer

You likely qualify if you owe $50,000 or less in combined taxes, penalties, and interest, have filed all required returns, and can demonstrate financial hardship. The program is designed for taxpayers who genuinely cannot pay their full tax liability without creating economic hardship. Self-employed individuals may qualify if they've experienced a 25% or more drop in income. The key is proving to the IRS that paying in full would prevent you from meeting basic living expenses. We evaluate your complete financial picture during our consultation to determine which Fresh Start options make sense for your situation. Don't assume you don't qualify just because you think you make too much money. The IRS looks at your actual ability to pay after necessary expenses, not just your gross income.

Question 2

Will the Fresh Start Program completely eliminate my tax debt?

Accepted Answer

It depends on which option you qualify for and your specific circumstances. An Offer in Compromise can reduce your debt by 80-90% or more in some cases, but not everyone qualifies. The IRS must believe they're getting the most they can reasonably expect to collect. Installment agreements don't reduce the total amount owed, but they make payments manageable and stop collection actions. Penalty abatement can eliminate significant portions of your bill if penalties make up a large part of what you owe. Currently Not Collectible status doesn't eliminate the debt, but it stops collection activities while you're experiencing financial hardship. The goal isn't always complete elimination—it's finding a solution you can actually live with while satisfying your tax obligations.

Question 3

How long does the Fresh Start Program application process take?

Accepted Answer

The timeline varies depending on which program you're applying for and how complete your financial documentation is. Installment agreements can often be approved within 30-60 days if everything is properly submitted. Offers in Compromise typically take 6-12 months because the IRS conducts a thorough review of your financial situation. During this time, collection actions are generally suspended, giving you breathing room while your case is being evaluated. The key is having all your documentation organized and submitted correctly the first time. Missing information or errors can significantly delay the process. That's why professional representation is so valuable—we know exactly what the IRS needs and how to present your case in the strongest possible light.

Question 4

Can the IRS still garnish my wages while my Fresh Start application is pending?

Accepted Answer

Generally, no. When you submit a properly completed Fresh Start application, the IRS typically suspends collection activities while they review your case. This includes wage garnishments, bank levies, and asset seizures. However, this protection only applies if your application is complete and submitted correctly. If the IRS determines your application is incomplete or frivolous, collection actions can resume. This is another reason why professional representation is crucial. Pennsylvania's Department of Revenue can still pursue collection for state taxes during this time unless you've also addressed those separately. We often handle both federal and state tax issues simultaneously to give you complete protection from collection actions.

Question 5

What happens if my Fresh Start application gets denied?

Accepted Answer

You have appeal rights if your application is denied. For Offers in Compromise, you can request an independent review by the IRS Office of Appeals within 30 days. Many cases that are initially rejected get approved on appeal when presented properly. If an installment agreement is denied, it's usually because of incomplete financial information or because the IRS believes you can pay more than you proposed. We can resubmit with additional documentation or negotiate different terms. The worst thing you can do is nothing. Even if one Fresh Start option doesn't work, there are usually other alternatives available. The key is having someone who understands the system and knows how to navigate the appeals process effectively.

Question 6

Should I try to handle the Fresh Start Program application myself?

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 not on your side—they want to collect as much as possible, as quickly as possible. The Fresh Start Program has strict requirements and deadlines. One mistake on your application can result in denial and resumed collection actions. The IRS receives thousands of these applications, and they're looking for reasons to reject them, not approve them. Professional representation levels the playing field. We know how to present your financial information in the most favorable light, which programs you're most likely to qualify for, and how to navigate the bureaucracy. The cost of professional help is usually far less than what you'll save through proper representation. Call 570-630-0201 or text 570-470-5228 to get started. We accept Mastercard and Visa with a 4% convenience fee.

IRS Fresh Start Program Marshbrook, PA