Question 1

Who qualifies for the IRS Fresh Start Program in Pennsylvania?

Accepted Answer

You may qualify if you owe $50,000 or less in taxes, penalties, and interest, are current on all required tax filings, and can demonstrate financial hardship or inability to pay the debt in full. Self-employed individuals may qualify if they show a 25% or more drop in income. The program isn't automatic - you must apply and meet specific criteria. You must prove financial hardship, complete required forms like IRS Form 9465 or Form 433-A, and stay compliant with future tax obligations. Many Pocono Springs residents qualify, especially those facing financial difficulties due to job loss, medical expenses, or business downturns.

Question 2

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

Accepted Answer

The reduction depends on which program option you qualify for and your specific financial situation. Through an Offer in Compromise, the IRS may settle for 10-20% of your debt if you can show you truly cannot afford to pay the full amount. Penalty abatement can save thousands of dollars for eligible taxpayers by removing penalties that have ballooned your debt. Installment agreements don't reduce the total amount owed but make payments manageable over time. For debts under $50,000, you can get streamlined installment agreements with up to six years to pay. The key is working with experienced professionals who know which option gives you the best outcome.

Question 3

Will the IRS stop collection actions during the Fresh Start process?

Accepted Answer

Yes, if you're approved for an Offer in Compromise, installment agreement, or hardship status (Currently Not Collectible), most collection actions like wage garnishments or bank levies pause or stop. This protection begins once your application is properly submitted and accepted for processing. However, you must stay current on any agreed-upon payments and future tax obligations. Missing a payment can lead to default, causing penalties, reinstated collection actions, or canceled agreements. Direct debit is recommended to avoid missed payments. During the application process, the IRS typically suspends aggressive collection activities, giving you breathing room to work toward a resolution.

Question 4

How long does the Fresh Start Program application process take?

Accepted Answer

The submission and review process can take several months, especially for Offers in Compromise. Installment agreements can last up to 72 months (6 years), while Offers in Compromise typically have shorter timelines and can resolve debt within months once approved. The timeline depends on several factors: the complexity of your case, which program you're applying for, and how quickly you provide required documentation. You should apply as soon as you know you cannot pay your full tax bill - the earlier you act, the more options you have and the fewer penalties and interest will accumulate. Working with experienced professionals speeds up the process significantly.

Question 5

What's the difference between doing this myself versus hiring professionals?

Accepted Answer

You can settle your tax debt directly with the IRS if you're eligible for an offer in compromise, but the process is complex and mistakes are costly. Providing inaccurate financial disclosures can lead to rejected applications, and waiting too long allows the IRS to take aggressive collection actions. Professional representation ensures proper documentation, maximizes your chances of approval, and protects you from costly errors. The application process can be complex and challenging to navigate, so engaging with a tax professional provides invaluable expertise and guidance, increasing your chances of a favorable outcome. Would you go to court without a lawyer? Then why would you go before the IRS without a trusted tax professional? We handle the paperwork, negotiate with the IRS, and protect your interests throughout the process.

Question 6

Are there any upfront costs for Fresh Start Program applications?

Accepted Answer

There's no fee for the Fresh Start Program itself, but some relief options include IRS application fees (like $205 for an Offer in Compromise) and potential fees for hiring a tax professional. Low-income taxpayers may qualify for waived fees. At All County Tax Resolution, we provide free initial consultations to evaluate your situation and explain your options. Should you engage our services, we credit 100% of your consultation fee to the resolution work provided. We believe in transparent pricing with no hidden costs. End the sleepless nights. Call 570-630-0201 or book online today. We will stand between you and the IRS, negotiate the lowest legal settlement, and give you the fresh start you deserve.

IRS Fresh Start Program Pocono Springs, PA