Question 1

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

Accepted Answer

You may qualify if you owe $50,000 or less in combined tax, penalties, and interest, have filed all required tax returns, and aren't in an open bankruptcy proceeding. The program is designed for taxpayers who can demonstrate financial hardship or inability to pay their full tax debt.Self-employed individuals must show a 25% decline in income to qualify for certain benefits like penalty relief. You also need to be current with estimated tax payments if you're self-employed. The key is having your complete financial picture evaluated by a professional who understands the specific eligibility requirements for each type of relief.Don't try to figure this out alone. The IRS has specific financial analysis formulas they use to determine what you can afford to pay. Most people underestimate their qualifying factors or miss important eligibility requirements that could save them thousands of dollars.

Question 2

What's the difference between an installment agreement and Offer in Compromise?

Accepted Answer

An installment agreement lets you pay your full tax debt over time through monthly payments, typically 72 months or less. You'll pay the entire amount you owe plus interest and penalties, but you avoid collection actions like wage garnishments and bank levies while you're making payments.An Offer in Compromise (OIC) is a settlement where the IRS accepts less than you owe as full payment. The IRS only approves an OIC when they believe it represents the most they can realistically collect from you. This requires proving you can't pay the full amount through detailed financial disclosure.The IRS approves about 26% of OIC applications nationally, but we achieve much higher success rates because we know how to present your financial situation properly. The wrong approach can result in rejection and leave you worse off than before you applied.

Question 3

Can the IRS still garnish my wages while I'm applying for Fresh Start relief?

Accepted Answer

The IRS can continue collection actions while your application is being processed unless you specifically request a Collection Due Process hearing or your case qualifies for automatic collection suspension. This is why timing and proper representation are critical.When we file certain applications on your behalf, we can often get collection actions suspended while the IRS reviews your case. For installment agreements, collection actions typically stop once you're approved and making payments. For Offers in Compromise, collection is suspended during the evaluation period.However, the IRS won't stop collection actions just because you say you're "working on" an application. You need properly filed paperwork and sometimes additional requests to halt garnishments and levies. This is where our representation becomes essential—we know exactly which forms to file and when to file them to protect you.

Question 4

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

Accepted Answer

Installment agreements can be approved in as little as 30 days if you qualify for streamlined processing and owe less than $50,000. More complex cases requiring financial analysis may take 60-90 days. The key is having all your documentation complete and accurate from the start.Offers in Compromise take much longer—typically 6-12 months for the IRS to make a decision. During this time, collection actions are generally suspended, which provides relief even while you're waiting. If the IRS doesn't respond within 24 months, your offer is automatically accepted.Currently Not Collectible status can be granted relatively quickly, often within 30-60 days, if you can demonstrate immediate financial hardship. The timeline depends on how quickly you can provide the required financial documentation and whether the IRS needs additional information to verify your situation.

Question 5

What happens if my Offer in Compromise gets rejected?

Accepted Answer

You have 30 days to appeal a rejected offer using Form 13711. The IRS Independent Office of Appeals provides additional review and often approves offers that were initially rejected by the collection division. Many successful settlements happen at the appeals level with proper representation.If your appeal is also rejected, you can submit a new offer if your financial situation has changed or if there were errors in your original application. There's no limit on how many times you can apply, but each rejection makes future applications more challenging.The key is understanding why your offer was rejected and addressing those specific issues. Common rejection reasons include incomplete financial disclosure, incorrect asset valuations, or failing to demonstrate genuine financial hardship. Our representation significantly improves your chances of approval because we know exactly what the IRS is looking for in a successful offer.

Question 6

Do I really need professional help, or can I handle this myself?

Accepted Answer

You can technically handle IRS matters yourself, but the question is whether you should. The IRS acceptance rate for self-prepared Offers in Compromise is about 26%, while we achieve success rates up to five times higher. One mistake can cost you years and thousands of dollars.The IRS uses complex financial analysis formulas to determine what you can afford to pay. Most people either overestimate their qualifying factors or miss important deductions that could significantly reduce their settlement amount. The forms are designed to be confusing, and the IRS isn't going to help you pay less.Think of it this way: would you go to court without a lawyer? The IRS has trained professionals working against you. Having our experienced representation levels the playing field and often saves you far more than it costs. We know exactly how to present your case for maximum impact and minimum payment.

IRS Fresh Start Program Pine Ridge, PA