Question 1

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

Accepted Answer

The reduction depends on your financial situation and which Fresh Start options you qualify for. Through Offers in Compromise, eligible taxpayers can reduce their debt by 90% or more—sometimes paying just pennies on the dollar. Penalty Abatement can eliminate 25-40% of what you owe by removing failure-to-file and failure-to-pay penalties. Combined with other Fresh Start provisions, many clients see their total debt cut in half or more. The exact amount varies based on your income, assets, expenses, and ability to pay. That's why we evaluate every case individually during our free consultation—to determine your maximum possible savings under the program.

Question 2

Do I qualify for the IRS Fresh Start Program if I owe more than $50,000?

Accepted Answer

Yes, you can still qualify for Fresh Start relief even with larger tax debts. The $50,000 limit applies specifically to streamlined installment agreements, which allow automatic approval for payment plans without extensive financial documentation. If you owe more than $50,000, you can still access Offers in Compromise, penalty abatement, Currently-Not-Collectible status, and traditional installment agreements. These options often provide better long-term relief than streamlined plans anyway. We've helped clients with six-figure tax debts achieve significant reductions through the Fresh Start Program. The key is presenting your case correctly and choosing the right combination of relief options for your situation.

Question 3

How long does the Fresh Start Program application process take?

Accepted Answer

The timeline varies depending on which Fresh Start options you're pursuing. Installment agreements typically take 30-60 days for approval. Penalty abatement requests usually process within 60-90 days. Offers in Compromise take longer—typically 6-12 months for the IRS to review and respond. Currently-Not-Collectible status can be approved within 30-45 days if your financial documentation is complete. While you're waiting for approval, the IRS generally stops collection activities like levies and garnishments. This gives you immediate relief even before your case is fully resolved. We handle all follow-up communications and keep you updated throughout the entire process.

Question 4

What happens if the IRS rejects my Fresh Start Program application?

Accepted Answer

Rejection doesn't mean the end of your options. Most rejections happen because of incomplete documentation, incorrect financial calculations, or choosing the wrong type of relief for your situation. We can appeal the decision, resubmit with additional documentation, or pivot to a different Fresh Start option that better fits your circumstances. Many clients who initially get rejected eventually receive approval through the appeals process or alternative approaches. The key is having experienced representation that knows how to respond to IRS objections and present your case in the strongest possible light. We don't give up after one "no"—we keep fighting until we find the path to your fresh start.

Question 5

Can I apply for the Fresh Start Program if I have unfiled tax returns?

Accepted Answer

You must file all required tax returns before the IRS will consider your Fresh Start Program application. This is a non-negotiable requirement—the IRS won't negotiate with taxpayers who aren't current on their filing obligations. The good news is that filing those back returns often works in your favor. Many clients discover they're owed refunds from certain years, which reduces their overall tax debt. Others find that their actual liability is lower than what the IRS estimated. We help you get caught up on all unfiled returns quickly and accurately. Once your filing compliance is current, we can immediately begin your Fresh Start Program application. This two-step process often results in better outcomes than trying to rush through incomplete applications.

Question 6

Is it worth hiring a professional for the Fresh Start Program or can I do it myself?

Accepted Answer

You can technically apply yourself, but the success rates are dramatically different. The IRS approves about 25% of self-prepared Offers in Compromise, compared to 60-70% of professionally prepared applications. Tax professionals know which forms to file, how to calculate your reasonable collection potential correctly, and how to present your case persuasively. We also know which Fresh Start options work best for different situations—something that's not obvious from IRS publications. Most importantly, we handle all IRS communications during the process. You don't have to field collection calls, decode confusing letters, or worry about missing critical deadlines. The peace of mind alone is worth the investment, and the higher success rates typically save you far more than our fees cost.

IRS Fresh Start Program Pocono Playhouse, PA