Question 1

How much can the IRS Fresh Start Program actually reduce my debt?

Accepted Answer

The reduction depends on your financial situation and which program you qualify for. Offers in Compromise can eliminate 90% or more of your total debt, including penalties and interest. For example, we recently helped an Old Forge small business owner reduce a $78,000 tax debt to a $12,000 settlement. Another client with $45,000 in back taxes qualified for Currently Not Collectible status, stopping all collection activity completely. The key is having a professional evaluate all your options. Many people assume they don't qualify for significant reductions when they actually do.

Question 2

What happens to IRS collection actions while you're working on my case?

Accepted Answer

We immediately file a Power of Attorney with the IRS, which legally requires them to deal with us instead of you. This typically stops phone calls and threatening letters within days. If you're facing wage garnishment, bank levies, or asset seizure, we can often get these released while we negotiate your settlement. The IRS is required to work with authorized representatives, and they know we understand their procedures. You'll have peace of mind knowing every IRS communication goes through our office first. No more surprise letters or unexpected phone calls disrupting your day.

Question 3

How long does the IRS Fresh Start Program process take?

Accepted Answer

Most cases resolve within 6-12 months, but simple Installment Agreements can be approved in 30-60 days. Offers in Compromise typically take 8-12 months due to IRS review requirements. The timeline depends on your specific situation and which program we pursue. Cases with missing tax returns take longer because we need to file those first. Complex financial situations require more documentation and back-and-forth with the IRS. What matters most is that collection actions stop immediately once we take your case. Even if the final resolution takes months, you're protected from day one.

Question 4

Do I really qualify for the Fresh Start Program if I owe a lot?

Accepted Answer

The Fresh Start Program has options for taxpayers owing anywhere from $10,000 to over $100,000. There's no upper limit on most programs - we've successfully resolved debts exceeding $500,000. What matters isn't how much you owe, but your ability to pay based on your income, expenses, and assets. Someone owing $80,000 but living paycheck to paycheck often qualifies for better deals than someone owing $20,000 with significant assets. The IRS updated their guidelines specifically to help more taxpayers qualify. Income limits increased, asset calculations changed, and payment plan options expanded significantly.

Question 5

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

Accepted Answer

Unfiled returns actually strengthen your position in many Fresh Start Program applications. The IRS can't accurately assess your true debt until all returns are filed, and we often discover refunds that offset what you owe. We handle the entire filing process using IRS wage and income transcripts. This ensures accuracy and often reveals that your actual debt is much lower than the IRS estimates they've been sending you. Many clients are shocked to learn they owe thousands less than expected once we file their missing returns properly. Some even end up with refunds that completely eliminate their debt.

Question 6

How much does professional tax resolution cost compared to trying myself?

Accepted Answer

Our fees are typically 10-15% of what we save you, making professional representation a smart investment. If we reduce a $50,000 debt to $8,000, our fee is a fraction of the $42,000 savings. More importantly, mistakes in Fresh Start Program applications often result in rejection and lost opportunities. The IRS rarely gives second chances on Offers in Compromise, and incorrect financial disclosures can trigger audits. We accept Mastercard and Visa with a 4% convenience fee, and offer payment plans to make professional representation affordable. Call 570-630-0201 or text 570-470-5228 to discuss your specific situation during a free consultation.

IRS Fresh Start Program Old Forge, PA