Question 1

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

Accepted Answer

Fresh Start qualification depends on which option you're pursuing. Streamlined installment agreements require owing $50,000 or less and current tax filings. Offers in Compromise require proving you can't pay the full amount based on income, expenses, and assets. You must have all tax returns filed first. The IRS won't consider any Fresh Start options until you're filing-compliant. We help clients catch up on missing returns as part of our process. Most people who contact us qualify for some relief. Even if you don't qualify for aggressive debt reduction, there are usually options to stop penalties and create manageable payments.

Question 2

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

Accepted Answer

An Offer in Compromise settles your tax debt for less than you owe—sometimes dramatically less. You make lump sum or short-term payments, and the IRS forgives the remaining balance. It's aggressive debt reduction but hardest to qualify for. Installment agreements let you pay full debt over time in monthly payments. It doesn't reduce what you owe but stops collection actions and makes debt manageable. For debts under $50,000, you get streamlined approval without detailed financial disclosure. Most clients prefer Offers when they qualify because total payments are much lower. But installment agreements work well for people who can afford monthly payments and want to avoid extensive documentation.

Question 3

How long does the Fresh Start application process take?

Accepted Answer

Timeline varies based on which program and case complexity. Streamlined installment agreements get approved in 30-60 days with minimal documentation. Standard installments take 60-90 days. Offers in Compromise take longer—usually 6-12 months from application to decision. The IRS reviews your entire financial situation and often requests additional documentation. Currently-Not-Collectible status processes in 30-60 days with clear hardship documentation. Start the process quickly. While your application is reviewed, the IRS typically stops collection actions like levies and wage garnishments. Every month you wait means more penalties and interest.

Question 4

Will the IRS accept payments while reviewing my application?

Accepted Answer

Yes, and making payments strengthens your case. For Offers in Compromise, you're required to make initial payments with application—either 20% upfront or first month's payment for periodic options. For installment agreements, start making proposed monthly payments immediately after submitting. This shows good faith and prevents additional penalties. If your proposed amount gets rejected, payments made get credited to your account. Never stop making payments while waiting for approval. The IRS views this as lack of commitment to resolving debt. We always advise making some payment, even smaller than what you want to negotiate.

Question 5

Can I apply for Fresh Start programs with unfiled returns?

Accepted Answer

No, you must be current on all required filings before the IRS considers Fresh Start applications. This is non-negotiable. If you have unfiled returns, getting those filed is step one. We help clients reconstruct tax records and file missing returns as part of our service. Sometimes we negotiate penalties down significantly when filing late returns, especially with reasonable causes for delays. Once all returns are filed, we immediately move forward with Fresh Start applications. Many clients are surprised their actual tax debt is lower than expected once we file accurate returns and claim available deductions.

Question 6

What if my Fresh Start application gets denied?

Accepted Answer

Denial doesn't end your options. Most denials happen from incomplete documentation or applying for wrong relief type. We can resubmit with additional information, appeal the decision, or pivot to different Fresh Start programs. If your Offer in Compromise gets rejected, we might pursue installment agreements. If Currently-Not-Collectible gets denied, we negotiate lower monthly payments. The key is experienced representation who knows how to present your case. We prepare clients for possible denial by applying for multiple programs simultaneously when appropriate. This gives backup options and speeds overall resolution. Even "failed" applications buy time by stopping collection actions during review. Would you go to court without a lawyer? Of course not! Then why would you go before the IRS without a trusted tax professional? End the sleepless nights. Call 570-630-0201 or text 570-470-5228 today. We will stand between you and the IRS, negotiate the lowest legal settlement, and give you the fresh start you deserve. We accept Mastercard and Visa with a 4% convenience fee.

IRS Fresh Start Program Pocono Manor, PA