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 regularly see 90% or more of their debt eliminated. We've seen cases where people owed $30,000 and settled for $20, or $65,000 reduced to $20 through offers in compromise.The IRS can't collect more than you can reasonably pay. If you're barely covering living expenses, they'll often accept a fraction of what you owe rather than nothing at all. Your income, assets, and necessary expenses all factor into the calculation.The program isn't about what you want to pay - it's about what you can actually afford based on IRS collection standards. That's why professional representation matters so much in these negotiations.

Question 2

Do I qualify for the Fresh Start Program if I owe more than $50,000?

Accepted Answer

You can still qualify, but the process is more complex. For streamlined installment agreements, you need to owe $50,000 or less. However, you can make a partial payment to reduce your balance below that threshold and then apply.Offers in compromise don't have the same $50,000 limit. If you can demonstrate financial hardship and inability to pay the full amount, the IRS will consider settling for less regardless of how much you owe.The key requirements are being current on all tax filings and showing genuine financial hardship. Self-employed individuals may qualify with a 25% or greater drop in income. Every case is different, which is why a proper evaluation is essential.

Question 3

What's the difference between legitimate tax relief and scam companies?

Accepted Answer

Legitimate companies like us evaluate your case honestly and only take clients we can actually help. Scammers promise everyone can settle for "pennies on the dollar" and demand large upfront fees before doing any work.Real tax professionals explain the process, timeline, and realistic outcomes upfront. We show you exactly which Fresh Start options apply to your situation and why. Scammers use high-pressure tactics and make guarantees no honest professional would make.The IRS specifically warns about companies that rush you to pay them immediately or promise results they can't deliver. We're transparent about costs, timelines, and what you can realistically expect. If we can't help you, we'll tell you that too.

Question 4

How long does the Fresh Start Program process typically take?

Accepted Answer

Timeline varies by which option you pursue. Streamlined installment agreements can be approved in 30-60 days if all paperwork is correct. Offers in compromise typically take 6-12 months for the IRS to review and decide.Currently-Not-Collectible status can often be achieved within 60-90 days. Penalty abatement requests usually get resolved in 2-4 months. The key is submitting complete, accurate applications the first time to avoid delays.During the process, the IRS typically stops collection activities like wage garnishments and bank levies. You'll have breathing room while your case is under review. We keep you updated throughout and handle all communication with the IRS directly.

Question 5

Can the IRS reject my Fresh Start Program application?

Accepted Answer

Yes, applications get rejected frequently - usually because of incomplete paperwork, unrealistic offers, or failure to meet basic requirements. That's exactly why professional representation is crucial for success.The IRS has specific formulas for calculating acceptable offers and strict requirements for supporting documentation. One missing form or incorrect calculation can result in automatic rejection. Then you're back to square one, often in a worse position.We know exactly what the IRS looks for and how to present your case for approval. Our job is to maximize your chances of success while protecting you from costly mistakes. The application process only works if it's done right the first time.

Question 6

What happens if I can't afford the Fresh Start Program payments?

Accepted Answer

If your financial situation changes after approval, there are options. Installment agreements can often be modified if you experience genuine hardship. You might qualify for Currently-Not-Collectible status to temporarily suspend payments.The worst thing you can do is simply stop paying without contacting the IRS. That voids your agreement and puts you back in collections. Instead, we help you request modifications before you fall behind.We also structure initial agreements conservatively based on your actual budget, not what you think you might be able to pay. It's better to start with lower payments you can sustain than agree to amounts that will cause problems later.

IRS Fresh Start Program Newfoundland, PA