Question 1

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

Accepted Answer

The reduction depends on your financial situation and which program you qualify for. Offers in Compromise can eliminate 90% or more of what you owe - some clients achieve 100% debt forgiveness if they meet specific criteria.Penalty abatement alone often saves thousands by removing the fees that accumulate on top of your original tax debt. Installment agreements don't reduce the total amount, but they make payments manageable and stop additional penalties from accruing.Your exact savings depend on factors like your income, assets, expenses, and ability to pay. That's why we start with a free consultation to calculate your realistic options and potential savings.

Question 2

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

Accepted Answer

Most taxpayers with back taxes qualify for some form of Fresh Start relief. The basic requirement is that you owe the IRS money and need help resolving it. Specific programs have different criteria.For streamlined installment agreements, you can owe up to $50,000 and set up payments online. Offers in Compromise require proving you can't pay the full amount - the IRS looks at your income, expenses, assets, and future earning potential.Currently-Not-Collectible status is for taxpayers facing genuine financial hardship. Penalty abatement works if you have reasonable cause for late filing or payment. We evaluate your situation during the free consultation to determine which options fit your circumstances.

Question 3

How long does the Fresh Start Program process take in PA?

Accepted Answer

Timeline varies by the type of relief you're seeking. Installment agreements often get approved within 30-60 days, especially streamlined plans for debts under $50,000. Currently-Not-Collectible status can be processed relatively quickly if your financial hardship is clear.Offers in Compromise take longer - typically 6-12 months because the IRS thoroughly reviews your financial situation. Penalty abatement requests usually resolve within 60-90 days depending on your circumstances and documentation.The key is starting the process quickly. While your case is pending, IRS collection activities typically stop or slow down significantly. Every month you wait, more penalties and interest accumulate, making your debt harder to resolve.

Question 4

What happens if the IRS rejects my Fresh Start application?

Accepted Answer

Rejection doesn't mean you're out of options. Often, applications get rejected for technical reasons or missing documentation that we can fix and resubmit. Sometimes the IRS needs additional financial information or wants to negotiate different terms.If your Offer in Compromise gets rejected, we can appeal the decision, submit a new offer with updated information, or explore other Fresh Start options like installment agreements or Currently-Not-Collectible status.Professional representation makes a huge difference here. We know how to address IRS objections, provide the right documentation, and present your case in the strongest possible light. Most taxpayers who get rejected tried to handle the process themselves without understanding IRS requirements.

Question 5

Can I handle the Fresh Start Program application myself without professional help?

Accepted Answer

You can try, but the success rate is dramatically lower without professional help. The IRS receives over 60,000 Offer in Compromise applications annually, but only accepts about 25% of them. Most rejections happen because of incomplete paperwork, incorrect calculations, or misunderstanding IRS requirements.We know how to present your financial situation in the best possible light, which forms to file, and how to respond to IRS requests for additional information. We also handle all communication with the IRS, so you don't have to deal with their phone calls and letters.The cost of professional help often pays for itself through better outcomes. Getting a larger debt reduction or avoiding rejection delays makes the investment worthwhile for most taxpayers.

Question 6

Will the Fresh Start Program affect my credit score in Pennsylvania?

Accepted Answer

The Fresh Start Program can actually improve your credit over time by resolving tax liens and stopping collection activities. Tax liens hurt your credit score significantly, but the program includes lien withdrawal options once your balance falls below $25,000.Successfully completing an installment agreement or Offer in Compromise removes the immediate threat of new liens and levies. This stops the cycle of accumulating tax debt that damages your credit and financial standing.However, the IRS may file new liens if you don't comply with your agreement terms. That's why we help you choose realistic payment plans you can actually maintain. The goal is resolving your tax debt permanently, not just temporarily, so you can rebuild your financial foundation.

IRS Fresh Start Program Mayfield, PA