Question 1

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

Accepted Answer

The reduction depends on your financial situation and which Fresh Start option you qualify for. Some taxpayers settle their entire debt for 10-20% of what they owed through an Offer in Compromise.

Others get payment plans that stop penalties and interest from growing, which can save thousands over time. The key is qualifying for the right program based on your income, expenses, and ability to pay.

We've seen reductions from 50% to over 90%, but it depends entirely on your specific circumstances. That's why we do a complete financial analysis before telling you what's realistic for your case.

Question 2

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

Accepted Answer

Yes, but your options change based on the amount. The streamlined installment agreements are limited to $50,000, but you can still qualify for other Fresh Start options with higher debt amounts.

Offers in Compromise don't have debt limits - they're based on your ability to pay. If you owe $100,000 but can only afford $10,000 based on your income and expenses, that could be your settlement amount.

The IRS looks at what you can reasonably pay over your remaining collection period. If that's less than your total debt, you might qualify for significant reduction regardless of how much you owe.

Question 3

How long does the Fresh Start Program application process take?

Accepted Answer

Most applications take 6-12 months for the IRS to review and approve. Offers in Compromise typically take longer than installment agreements because they require more documentation and review.

The timeline depends on how quickly we can gather your financial information and how complex your case is. Simple wage earner cases move faster than business owners with multiple income sources.

During the application process, the IRS stops most collection actions. That means no new liens, levies, or garnishments while they review your case. You get protection even before approval.

Question 4

What happens if the IRS rejects my Fresh Start application?

Accepted Answer

Rejection isn't the end of the road. Most rejections happen because of incomplete documentation or applying for the wrong program. We can often fix these issues and resubmit.

You also have appeal rights if your application gets rejected. We can present additional evidence or argue why the IRS decision was incorrect. Many cases get approved on appeal that were initially rejected.

The worst case scenario is you're back where you started, but you've bought time during the application process. The IRS can't take collection actions while reviewing your case, which gives you breathing room to explore other options.

Question 5

Can I apply for the Fresh Start Program myself without hiring a professional?

Accepted Answer

You can, but the success rate is much lower without professional help. The IRS publishes the forms, but knowing what documentation they actually want and how to present your case is different.

Most do-it-yourself applications get rejected for technical reasons - wrong forms, missing documentation, or not meeting specific requirements that aren't obvious from reading IRS publications.

Would you go to court without a lawyer? Then why would you go before the IRS without a trusted tax professional? The stakes are too high and the rules too complex to risk doing it wrong.

Question 6

Does the Fresh Start Program stop IRS collection actions immediately?

Accepted Answer

Once we submit your application, most IRS collection actions stop while they review your case. This includes new liens, levies, and wage garnishments. Existing garnishments typically continue until the IRS processes your application.

The protection lasts throughout the review process, which can take several months. If your application gets approved, the collection actions stop permanently as long as you comply with your agreement terms.

If you're facing immediate collection action like a bank levy or wage garnishment, we can often get emergency relief even before submitting a formal Fresh Start application. Time is critical in these situations.

IRS Fresh Start Program Priceville, PA