Question 1

How Do I Know If I Qualify For The IRS Fresh Start Program?

Accepted Answer

The Fresh Start Program isn't one program - it's a collection of IRS policies designed to help taxpayers resolve their debts. Most people with tax debt under $50,000 qualify for streamlined installment agreements. For Offers in Compromise, you'll need to demonstrate financial hardship or that collecting the full amount would create economic hardship. The key factors are your current income, necessary living expenses, and asset values. If you can't pay your basic living expenses and your full tax debt, you likely have options. We'll review your complete financial picture during your consultation and tell you exactly which programs you qualify for. Don't worry if you haven't filed recent returns - we can help get you current first, which is usually required before applying for relief programs.

Question 2

How Much Will The Fresh Start Program Actually Reduce My Tax Debt?

Accepted Answer

The reduction depends on your specific financial situation and which program you use. Offers in Compromise can reduce debt by 90% or more in some cases - we've seen $50,000 debts settled for $5,000 when the taxpayer truly couldn't pay more. Installment agreements don't reduce the principal amount but can eliminate future penalties and reduce interest. Penalty abatement can remove years of accumulated penalties if you qualify. Currently Not Collectible status doesn't reduce the debt but stops all collection activities until your financial situation improves. The amount you'll actually pay depends on your income, necessary expenses, and asset values. We'll calculate the lowest amount the IRS will legally accept based on their own formulas, then negotiate from there. Every dollar we save you is money that stays in your family's pocket.

Question 3

How Long Does The Fresh Start Program Application Process Take?

Accepted Answer

Simple installment agreements can be approved in 30-60 days. Offers in Compromise typically take 6-12 months because the IRS reviews your complete financial situation. Penalty abatement requests usually process within 2-3 months. The timeline depends partly on how quickly we can gather your documentation and partly on IRS processing times. We'll establish representation immediately, which stops collection activities while your application is pending. This means no more threatening letters or surprise levies while we work on your case. We stay in constant contact with the IRS throughout the process and keep you updated on every development. Most importantly, once we submit your application, you're protected from most collection activities until the IRS makes a decision.

Question 4

What Happens If The IRS Rejects My Fresh Start Application?

Accepted Answer

Rejection isn't the end of the road. We can appeal the decision, submit additional documentation, or explore alternative programs. Sometimes the IRS rejects an application because they need more information or disagree with our asset valuation - both issues we can address. If an Offer in Compromise is rejected, we might pursue an installment agreement instead. If penalty abatement is denied, we can appeal with additional documentation. There are multiple paths to resolution, and we'll keep working until we find one that works. The key is having experienced representation who knows how to present your case properly the first time. We've handled thousands of cases and know exactly what documentation the IRS requires and how to address their concerns before they become problems.

Question 5

Can I Apply For The Fresh Start Program If I Haven't Filed Tax Returns?

Accepted Answer

You'll need to be current on your filing requirements before most Fresh Start programs will consider your application. But this isn't as scary as it sounds - we help clients get caught up on unfiled returns all the time. We can often prepare multiple years of returns quickly and submit them before pursuing relief programs. Sometimes unfiled returns actually work in your favor because the IRS's estimated assessments are usually higher than what you actually owe. Getting current on filings is usually the first step in any tax resolution case. Once your returns are filed, we can pursue installment agreements, Offers in Compromise, or other relief programs. The important thing is starting the process - every month you wait, penalties and interest keep accumulating.

Question 6

Should I Try To Negotiate With The IRS Myself Or Hire A Professional?

Accepted Answer

Would you go to court without a lawyer? The IRS has teams of trained professionals whose job is to collect every dollar you owe. They know the tax code, the negotiation process, and exactly how to evaluate your financial situation. When you represent yourself, you're often leaving money on the table because you don't know what documentation to provide or how to present your case. One mistake can cost you thousands or eliminate your chances at real relief. Professional representation levels the playing field. We know which programs you qualify for, what the IRS will actually accept, and how to present your case for the best possible outcome. Plus, once we establish representation, the IRS stops contacting you directly - no more stressful phone calls or threatening letters. We handle everything until your case is completely resolved.

IRS Fresh Start Program Parkers Glen, PA