Question 1

How do I know if I qualify for the IRS Fresh Start Program?

Accepted Answer

You might qualify if you owe $50,000 or less in combined taxes, penalties, and interest, and you've filed all required tax returns. Self-employed individuals need to show a 25% income decline to qualify for certain benefits.The program isn't automatic—you need to apply and meet specific criteria. We review your situation during our consultation and tell you exactly which options you qualify for. Don't guess about eligibility when a simple phone call can give you definitive answers.

Question 2

Can the IRS really reduce what I owe to the government?

Accepted Answer

Yes, through several mechanisms within the Fresh Start Program. An Offer in Compromise can settle your debt for less than you owe if you can prove financial hardship. Penalty abatement removes penalties for reasonable cause, which can be substantial.Installment agreements don't reduce the debt but make it manageable with extended payment terms. Currently Not Collectible status temporarily stops collections if you can't afford payments. The key is knowing which option fits your situation and applying correctly the first time.

Question 3

What happens if I try to handle this myself?

Accepted Answer

The IRS processes millions of requests annually, and they deny most applications that aren't prepared correctly. One small mistake on your financial disclosure can result in rejection, and reapplying takes months.You're also negotiating against trained IRS agents who do this full-time. They know every rule and exception. Without professional help, you might accept a payment plan you can't afford or miss opportunities for better relief. We've seen people pay thousands more than necessary because they didn't know what they qualified for.

Question 4

How long does the Fresh Start Program process take?

Accepted Answer

Simple installment agreements can be approved in 30-60 days. Offer in Compromise cases typically take 6-12 months due to the detailed financial review required. Penalty abatement requests usually resolve within 2-4 months.The timeline depends on your specific situation and which relief option you pursue. Cases with missing tax returns or complex financial situations take longer. We expedite the process by submitting complete, accurate applications and following up regularly with the IRS.

Question 5

What if the IRS has already started collection actions against me?

Accepted Answer

We can often stop active collection efforts while negotiating your Fresh Start resolution. Once we submit certain applications, the IRS typically suspends levies and garnishments during the review period.If they've already seized assets or wages, we work to get releases as part of your settlement. The key is acting quickly—the longer you wait, the more aggressive their collection efforts become. Even if you're facing immediate collection action, Fresh Start options are still available.

Question 6

Will this program hurt my credit score?

Accepted Answer

The Fresh Start Program itself doesn't directly impact credit scores, but it can prevent damage. Tax liens used to automatically appear on credit reports, but the major credit bureaus changed their policies and now exclude most tax liens.However, unpaid taxes can still lead to liens, levies, and other collection actions that affect your financial stability. By resolving your tax debt through Fresh Start, you prevent these more serious consequences. An installment agreement or settled debt is much better for your financial future than ongoing IRS collection efforts.

IRS Fresh Start Program Parkvale, PA