Question 1

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

Accepted Answer

You may qualify if you owe $50,000 or less, are current on all required tax filings, and can demonstrate financial hardship or inability to pay the debt in full. The program is designed for taxpayers who genuinely cannot pay their full tax debt without creating severe economic hardship.Self-employed individuals may qualify if they show a drop of 25% or more in income. This is particularly relevant for Millrift area residents who work in seasonal industries or run small businesses affected by economic downturns.The key is proving you can't pay the full amount without compromising your ability to meet basic living expenses. A tax professional can evaluate your specific situation and determine which Fresh Start option gives you the best outcome.

Question 2

What's the difference between Fresh Start and Offer in Compromise?

Accepted Answer

An offer in compromise lets you settle your tax debt for less than you owe. This used to be called the Fresh Start program. The confusion comes from how these terms evolved over time.The Offer in Compromise is just one option within the IRS Fresh Start Initiative. Think of Fresh Start as an umbrella covering multiple tax relief programs, with OIC being the most aggressive option for debt reduction.The amount accepted is based on income, assets, expenses, and ability to pay rather than the original tax liability. In some cases, taxpayers may pay as little as 10% to 20% of their total debt. But approval requires proving you truly cannot pay the full amount, now or in the future.

Question 3

How long does the Fresh Start Program application process take?

Accepted Answer

The timeline varies significantly based on which Fresh Start option you pursue and how complex your financial situation is. Installment agreements for debts up to $50,000 have a streamlined approval process with reduced financial documentation requirements, often resolving within 30-60 days.Offers in Compromise take longer, typically 6-12 months or more. You can now take up to 24 months to pay off an approved offer in compromise, giving you more flexibility once approved.The key is starting the process quickly. Penalties can quickly balloon your debt, and failing to take action results in higher penalties and fees. Every month you wait, your debt grows and your options potentially shrink.

Question 4

Will the Fresh Start Program stop IRS collection actions immediately?

Accepted Answer

Once you properly enter a Fresh Start program, most IRS collection activities will stop. If you cannot afford to pay anything, the IRS may mark your account as currently not collectible and stop all collection actions against you.For installment agreements, collection actions typically cease once your payment plan is approved and you're making payments as agreed. The IRS has made it easier to get liens withdrawn after paying tax debt or setting up a direct debit installment agreement.However, you must stay current with your agreement terms and all future tax obligations. Missing payments or falling behind on current taxes can restart collection activities and potentially void your Fresh Start arrangement.

Question 5

Can I apply for Fresh Start if I haven't filed all my tax returns?

Accepted Answer

No, you must be current on all required tax filings before qualifying for most Fresh Start options. You must be current on all required tax filings to be eligible for the program.This requirement makes sense—the IRS wants to see you're committed to compliance before offering relief on past debts. If you have unfiled returns, that becomes your first priority before pursuing Fresh Start options.Individuals who haven't filed all required tax returns or are not current with estimated tax payments may not qualify for this program. However, a tax professional can help you get caught up on filings quickly and then immediately pursue Fresh Start relief for your back taxes. Don't let unfiled returns delay your path to tax freedom—address them now and move forward with relief options.

Question 6

What happens if my Fresh Start application gets denied?

Accepted Answer

A denial doesn't mean you're out of options. We can help you find alternative solutions, including custom installment agreements with longer payment periods or lower monthly payments, alternative OIC arrangements, and penalty and interest abatement.The IRS provides specific reasons for denials, which gives you a roadmap for addressing their concerns. Sometimes it's a matter of providing additional documentation or choosing a different Fresh Start option that better fits your situation.For those facing severe financial hardship or complex tax situations, we can help document your case and represent your interests before the IRS. Professional representation often makes the difference between denial and approval because we know exactly how to present your financial situation in the most favorable light.Ready to end the sleepless nights? Call 570-630-0201 or text 570-470-5228 to book your consultation today. All County Tax Resolution will stand between you and the IRS, negotiate the lowest legal settlement, and give you the fresh start you deserve. Payment accepted via Mastercard and Visa with 4% convenience fee.

IRS Fresh Start Program Millrift, PA