Question 1

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

Accepted Answer

Qualifying taxpayers may reduce their federal tax debt by up to 90 percent through the Fresh Start Program. The actual reduction depends on your financial situation, ability to pay, and which program option fits your circumstances. Offer in Compromise modifications make it easier to settle tax debt for less than the full amount owed.The program mandates that the IRS cannot collect more than a taxpayer can reasonably afford to pay. The IRS generally approves offers when the amount represents the most they can expect to collect within a reasonable period. Your reduction amount reflects your genuine ability to pay, not arbitrary discounts.

Question 2

What are the income requirements for Fresh Start Program eligibility in Pennsylvania?

Accepted Answer

The Fresh Start Program is available to taxpayers with outstanding tax debts of $50,000 or less. You must owe $60,000 or less, be current on tax filings, and prove financial hardship. Individuals with annual incomes of $100,000 or less who can demonstrate financial hardship like unemployment or reduced income may qualify.With Olyphant's median household income of $63,516, many local residents fall within qualifying income ranges. For those owing less than $50,000, there's no requirement to disclose income or assets to the IRS, potentially yielding more affordable installment plans. The key is demonstrating genuine financial hardship, not just hitting income thresholds.

Question 3

How long does the Fresh Start Program application process typically take?

Accepted Answer

Your offer is automatically accepted if the IRS doesn't make a determination within two years of receipt, not including any appeal period. The Offer in Compromise process has been modernized with online applications and more detailed financial disclosure requirements. Most cases resolve faster than the two-year maximum.For periodic payment offers, you continue making monthly installments while the IRS considers your application. The IRS suspends other collection activities during the review process. We handle all paperwork, follow-ups, and communications to keep your case moving efficiently through the system.

Question 4

Can the Fresh Start Program help if I already have tax liens?

Accepted Answer

Yes. The Fresh Start Program offers options to remove existing tax liens, but you must commit to regular direct debit payments on your federal tax debt. Taxpayers can request lien withdrawal after fully paying tax liabilities, helping rebuild credit faster and regain financial freedom through a streamlined process.The program increased the tax lien threshold from $5,000 to $10,000, meaning fewer taxpayers face liens on smaller debts. For debts under $25,000, you can avoid or withdraw liens by agreeing to Direct Debit Installment Agreements with automatic bank deductions. Even with existing liens, Fresh Start options can provide real relief.

Question 5

What happens if I don't qualify for the Fresh Start Program?

Accepted Answer

Alternative solutions include custom installment agreements with longer payment periods, alternative Offer in Compromise arrangements, and penalty and interest abatement through professional tax advocates. Emergency collection relief can provide immediate protection from wage garnishments, bank levies, or tax liens.Our goal remains resolving IRS tax matters for less than you owe, or potentially paying nothing at all. You might qualify for Currently Not Collectible status if financial hardship makes collection temporarily impossible. No case is too small - if standard Fresh Start options don't fit, we find alternatives that do.

Question 6

Why should I hire a professional instead of applying for Fresh Start myself?

Accepted Answer

The qualification process requires reading and comprehending a 50-page description, plus skillfully negotiating with the IRS for approval. Mistakes can jeopardize your request entirely. Generally, about 26% of Offers in Compromise are accepted by the IRS, but professional representation significantly improves your chances.When taxpayers partner with IRS licensed enrolled agents or tax attorneys, they increase chances of capturing payment plans and settling back tax debt for the lowest possible amount while removing liens, levies, and garnishments. Professional tax experts provide reassurance coupled with actual tax debt resolution skills. You wouldn't go to court without a lawyer - why face the IRS without professional representation?

IRS Fresh Start Program Olyphant, PA