Question 1

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

Accepted Answer

The amount varies based on your financial situation, but qualified taxpayers can reduce their tax debt by 90% or more through an Offer in Compromise. We've helped clients settle $50,000 debts for $5,000 or less when they meet IRS criteria for financial hardship. The key is proving you cannot pay the full amount without creating genuine economic hardship. The IRS would rather collect something than nothing, so they'll accept dramatically reduced settlements from taxpayers who demonstrate they lack the assets and income to pay more. Your reduction depends on your income, expenses, asset equity, and ability to pay over time. We analyze every aspect of your finances to present the strongest possible case for maximum debt reduction.

Question 2

What happens if the IRS rejects my Fresh Start application?

Accepted Answer

IRS rejection doesn't end your options—it often means the application wasn't prepared correctly or didn't include the right supporting documentation. We immediately review the rejection letter to understand exactly why the IRS said no. Most rejections happen because taxpayers tried to handle the process themselves and made critical errors. The IRS requires specific financial forms, asset valuations, and hardship documentation presented in precise ways. Miss one requirement and they reject the entire application. We can resubmit with corrections, appeal the decision, or pivot to a different Fresh Start option that better fits your situation. Sometimes an installment agreement works better than an Offer in Compromise, or Currently Not Collectible status provides the relief you need while we prepare a stronger application later.

Question 3

How long does the IRS Fresh Start process typically take?

Accepted Answer

Timeline depends on which program you qualify for and how complex your case is. Simple installment agreements can be approved within 30-60 days. Offers in Compromise typically take 6-12 months because the IRS conducts thorough financial investigations. Currently Not Collectible status can provide immediate relief within weeks, stopping all collection activities while we work on your long-term resolution. The IRS must respond to properly submitted applications within specific timeframes, but they often request additional documentation that can extend the process. We expedite everything possible by submitting complete, accurate applications the first time and responding immediately to any IRS requests. Most clients see collection activities stop within the first 30 days once we're representing them, even while the application is still pending.

Question 4

Can I qualify for Fresh Start if I haven't filed all my tax returns?

Accepted Answer

You must file all required returns before the IRS will consider any Fresh Start application. This is non-negotiable—the IRS requires current compliance as a condition of participating in any relief program. We help clients get caught up on unfiled returns quickly and correctly. Many people avoid filing because they owe money, but not filing makes everything worse. The IRS can file substitute returns for you that often show much higher tax liability than what you actually owe. Once we file your missing returns, we can immediately begin the Fresh Start application process. Sometimes filing the correct returns actually reduces your total debt because the IRS substitute returns don't include deductions and credits you're entitled to claim.

Question 5

What if I can't afford the payment plan the IRS offers?

Accepted Answer

The IRS initial payment plan offer is rarely the best you can get. They typically propose payments based on your total debt divided by 72 months, without considering your actual ability to pay those amounts. We negotiate payment plans based on your real financial situation—your income, necessary living expenses, and other obligations. If you can only afford $200 monthly but they want $800, we prove why the lower amount is all you can reasonably pay. For taxpayers who truly cannot afford any payment, Currently Not Collectible status stops all collection activities. Your case gets reviewed periodically, but you make no payments while experiencing genuine financial hardship. This gives you time to improve your situation without the IRS making it worse.

Question 6

Will the Fresh Start Program stop IRS wage garnishments and bank levies?

Accepted Answer

Yes, enrolling in most Fresh Start programs immediately stops ongoing wage garnishments and prevents new bank levies. The IRS must halt collection activities once you're accepted into an installment agreement or while your Offer in Compromise is being processed. If you're already facing garnishments or levies, we can often get them released within days by demonstrating you're working toward resolution through proper channels. The IRS would rather have you in a payment plan than continue disruptive collection actions. Currently Not Collectible status provides the fastest relief from collection activities. Once approved, all garnishments stop, levy threats end, and you get breathing room to stabilize your finances. This protection continues as long as your financial hardship persists and you remain compliant with current tax obligations.

IRS Fresh Start Program Palmyra, PA