Question 1

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

Accepted Answer

You may qualify if you owe $50,000 or less in combined taxes, penalties, and interest, are current on all required tax filings, and can demonstrate financial hardship or inability to pay without economic strain. Self-employed individuals may qualify if they show a 25% or more drop in income. The key is having all your tax returns filed first. The IRS will not grant relief to individuals who have unfiled tax returns. If you're behind on filings, that needs to be addressed before applying for Fresh Start relief. All County Tax Resolution can help you get caught up on filings and then pursue the relief option that makes the most sense for your situation.

Question 2

What's the difference between an Offer in Compromise and an installment agreement?

Accepted Answer

An Offer in Compromise allows you to settle your tax debt for less than the full amount owed, with the IRS now considering your current income and assets rather than future earning potential. This is the "pennies on the dollar" option you hear about, but it requires proving genuine financial hardship. Installment agreements let you pay over time, typically up to 72 months for individuals owing up to $50,000. You're still paying the full amount, but in manageable monthly payments. Direct debit options simplify payments and reduce default risk. Most Mount Pocono residents find installment agreements more realistic than trying to qualify for an Offer in Compromise.

Question 3

Will the IRS stop trying to collect from me once I apply for Fresh Start?

Accepted Answer

Yes, if you're approved for an OIC, installment agreement, or hardship status, most collection actions like wage garnishments or bank levies pause or stop. However, this protection typically begins once your application is accepted, not just when you submit it. The IRS can take aggressive collection actions like wage garnishments and bank levies if debt remains unresolved, which is why timing matters. The sooner you get professional help, the more options you'll have. All County Tax Resolution can often get temporary relief while your application is being processed, giving you breathing room during the resolution process.

Question 4

How long does the Fresh Start Program application process take in Pennsylvania?

Accepted Answer

The review process can take several months, especially for Offers in Compromise. Installment agreements can last up to 72 months, while Offers in Compromise typically resolve within months once approved. The timeline depends on which relief option you pursue and how complete your application is. Currently Non-Collectible status offers temporary relief and is subject to periodic IRS review, while the Fresh Start Initiative itself remains available with varying timelines based on your financial situation. Having professional representation speeds up the process because your application is complete and accurate from the start, avoiding delays from missing documentation or errors.

Question 5

What happens if I miss payments on my Fresh Start installment agreement?

Accepted Answer

Missing a payment can lead to default, causing penalties, reinstated collection actions, or canceled agreements. Direct debit is recommended to avoid missed payments. This is why it's crucial to set up realistic payment amounts from the beginning. If you do miss a payment, you're not automatically kicked out of the program, but you need to act quickly. The IRS may reinstate your agreement if you can catch up and explain the circumstances. Direct debit options simplify the payment process and reduce the risk of default. All County Tax Resolution helps clients set up sustainable payment plans and provides ongoing support to prevent default situations.

Question 6

Can small businesses in Mount Pocono use the Fresh Start Program?

Accepted Answer

Small businesses with $25,000 or less in tax debt may qualify for certain Fresh Start benefits. Small businesses that owe back taxes and are current with filings may qualify for installment plans, penalty relief, or OIC, though payroll tax debt may require separate compliance steps. The program is designed to assist a broad range of taxpayers, including small businesses struggling to pay tax debts, with eligibility determined by factors like income level, total tax debt, and ability to pay. Mount Pocono's small business community, from restaurants to service providers, can benefit from these programs when they're properly represented and their applications are handled correctly.  Would you go to court without a lawyer? Of course not! Then why would you go before the IRS without a trusted tax professional? End the sleepless nights. Call 570-630-0201 or book online 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. Text us at 570-470-5228. We accept Mastercard and Visa with a 4% convenience fee.

IRS Fresh Start Program Mount Pocono, PA