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 often see dramatic results. Through an Offer in Compromise, you might qualify for 90% or even 100% debt forgiveness if you can demonstrate that paying the full amount would create financial hardship. The IRS considers your income, expenses, assets, and ability to pay over time. If your monthly disposable income is minimal and you have few valuable assets, you could settle for pennies on the dollar. However, the IRS scrutinizes these applications carefully, which is why professional representation significantly improves your chances of approval.

Question 2

What happens if I owe more than $50,000 in back taxes?

Accepted Answer

You still have options, but the process becomes more complex. The streamlined installment agreement threshold is $50,000, but you can still negotiate payment plans for higher amounts—they just require more documentation and IRS approval. For larger debts, an Offer in Compromise becomes even more valuable because the potential savings are substantial. The IRS will still consider your case based on your ability to pay, not just the amount you owe. Professional representation becomes crucial at this level because one mistake in your application can result in automatic rejection and wasted time.

Question 3

How long does the IRS Fresh Start Program application process take?

Accepted Answer

Timeline varies by the type of relief you're seeking. Installment agreements can be approved in 30-60 days if your paperwork is complete and accurate. Currently-Not-Collectible status decisions typically take 2-4 months. Offers in Compromise take the longest—usually 6-12 months because the IRS conducts thorough financial investigations. However, once you submit an OIC application, collection activities generally stop while it's under review. This gives you immediate relief from garnishments and levies while your case is pending.

Question 4

Can the IRS reject my Fresh Start Program application?

Accepted Answer

Yes, and they reject most applications that are filed incorrectly or without proper documentation. Common rejection reasons include incomplete financial disclosure, unrealistic offers that don't reflect your true ability to pay, and missing tax returns. This is why professional representation matters. Tax resolution experts know exactly what documentation the IRS requires and how to present your financial situation in the most favorable light. We also understand IRS internal procedures and can address issues before they become rejection reasons. If your application is rejected, you can appeal or reapply with corrections.

Question 5

Will I still owe taxes while my Fresh Start application is being processed?

Accepted Answer

Your tax debt doesn't disappear during the application process, but IRS collection activities typically stop once you submit certain applications like an Offer in Compromise. This means no new garnishments or levies while your case is under review. However, interest and penalties may continue accruing on your balance until a final agreement is reached. For installment agreements, you'll need to start making payments once approved. The key is getting your application submitted correctly and quickly to minimize additional charges and get collection protection as soon as possible.

Question 6

What if I haven't filed tax returns for several years?

Accepted Answer

You must be current on all required tax filings before the IRS will consider any Fresh Start Program application. This means filing all missing returns, even if you can't pay the taxes owed. All County Tax Resolution handles the entire process of getting you compliant. We'll prepare and file all missing returns, often uncovering deductions and credits you missed that reduce your overall debt. Once you're current on filings, we can immediately begin negotiating your Fresh Start Program resolution. The sooner you address missing returns, the sooner you can access debt relief options.

IRS Fresh Start Program Milford, PA