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 and which program you qualify for. Penalty abatement alone can cut your debt by 25-50% since IRS penalties often make up a huge chunk of what you owe. An Offer in Compromise can settle your entire debt for as little as 10% of the original amount - we've seen clients with $100,000 tax debts settle for $5,000. Streamlined installment agreements don't reduce the total amount, but they make payments manageable - sometimes as low as $25 per month for debts under $50,000. The key is combining multiple programs when possible. A client might get penalty abatement to reduce the total, then an installment plan for what's left. Every case is different, which is why we do a complete financial analysis during your free consultation. We'll tell you exactly what reduction you can expect before you commit to anything.

Question 2

Will the IRS accept my Offer in Compromise application?

Accepted Answer

The IRS accepts about 40% of properly prepared Offer in Compromise applications, but the acceptance rate is much higher when you have experienced representation. The key is submitting an offer the IRS will actually consider reasonable based on your true ability to pay. Most people who try to file an OIC themselves get rejected because they don't understand how the IRS calculates your "reasonable collection potential." They look at your income, expenses, and assets using very specific formulas. If your offer is too low based on their calculation, it gets rejected automatically. We know exactly how to present your financial information to maximize your chances of acceptance. We also know when an OIC isn't your best option and can recommend alternatives like installment agreements or Currently-Not-Collectible status that might work better for your situation.

Question 3

How long does the Fresh Start Program process take?

Accepted Answer

Most cases resolve within 3-6 months, but it depends on which program you're applying for and how quickly the IRS responds. Streamlined installment agreements are usually approved within 30-60 days since they're largely automated. Penalty abatement requests typically take 60-90 days. Offers in Compromise take the longest - usually 6-12 months from submission to final decision. The IRS has specific timeframes they're supposed to follow, but they often take longer during busy seasons. Currently-Not-Collectible status can be approved relatively quickly if your financial hardship is clear. The good news is that once we submit your application, IRS collection activity typically stops. No more threatening letters. No garnishment actions. You get breathing room while we work on your case. We'll keep you updated throughout the process so you know exactly where things stand.

Question 4

What happens if I owe taxes for multiple years?

Accepted Answer

Owing for multiple years actually makes you a better candidate for Fresh Start Program relief, not worse. The IRS wants to resolve old cases and get them off their books. If you owe for several years, you likely qualify for streamlined processing that speeds up your case. We'll need to get you compliant first by filing any missing tax returns. The IRS won't consider any relief programs until all required returns are filed. Once you're compliant, we can address the entire tax debt as one case rather than dealing with each year separately. Multiple years of tax debt often mean substantial penalties and interest have accumulated. Penalty abatement becomes even more valuable because we can potentially remove penalties from all affected years. We've seen clients with 5-6 years of unfiled returns get their total debt reduced by 60-70% through a combination of penalty abatement and an Offer in Compromise.

Question 5

Can the IRS still garnish my wages while we're working on my case?

Accepted Answer

Once we submit your Fresh Start Program application, the IRS typically stops all collection activity including wage garnishments, bank levies, and asset seizures. This is called a "collection hold" and it gives us time to negotiate your case without the pressure of ongoing collection actions. If the IRS has already started garnishing your wages, we can often get that stopped immediately by requesting a Collection Due Process hearing or submitting an emergency hardship application. The key is acting quickly - the longer you wait, the more they can collect. Even if your Fresh Start application gets rejected, you have appeal rights that extend the collection hold. We'll fight to keep you protected throughout the entire process. The worst thing you can do is ignore IRS collection notices and hope they go away. They won't, and your situation will only get worse.

Question 6

Would you go to court without a lawyer?

Accepted Answer

Of course not. Then why would you go before the IRS without a trusted tax professional? The IRS has teams of lawyers, accountants, and collection specialists whose job is to collect every penny you owe. You need someone in your corner who knows their tactics and can negotiate from a position of strength. Tax law is incredibly complex, and the IRS Fresh Start Program has specific requirements that must be met exactly. One mistake on your application can mean automatic rejection and months of wasted time. Meanwhile, the penalties and interest keep adding up, making your situation worse. We know the IRS agents personally. We understand their procedures, their deadlines, and what they'll actually accept. When we call them, they take our calls and listen to our proposals. When you call them, you get transferred five times and end up more confused than when you started. The choice is obvious.

IRS Fresh Start Program New Milford, PA