Question 1

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

Accepted Answer

Eligible taxpayers may be able to reduce 90% or more of what they owe through the Fresh Start Program. The exact amount depends on your financial situation and which relief option you qualify for. An Offer in Compromise lets you settle for significantly less than the full amount if you can prove financial hardship. Taxpayers must owe $50,000 or less in tax debt to be eligible for streamlined installment agreements, though you may still qualify by making a partial payment to reduce the balance. The IRS evaluates your income, expenses, assets, and future earning potential to determine what you can realistically pay. If you truly cannot afford the full amount, they're required to work with you on a reduced settlement.

Question 2

What documents do I need to apply for the Fresh Start Program?

Accepted Answer

Installment agreements may require financial statements and other supporting documentation, historical tax information and applicable completion of IRS forms such as a Collection Information Statement, Form 433-A or Form 433-F. You'll need recent pay stubs, bank statements, monthly expense records, and asset information. If you're self-employed, bring profit and loss statements and business bank records. The IRS wants a complete picture of your financial situation to determine the best relief option. You must be current on all tax filings, with any unfiled tax returns submitted before you can apply for relief. If you're missing returns, that becomes the first priority before pursuing any Fresh Start options.

Question 3

How long does the Fresh Start Program application process take?

Accepted Answer

The duration depends on the relief option you choose - installment agreements can extend over several years, while an Offer in Compromise might settle your debt more quickly. Simple installment agreements often get approved within 30-60 days. Offers in Compromise take longer because they require extensive financial documentation and IRS review. Your offer is automatically accepted if the IRS doesn't make a determination within two years of the receipt date. During the application process, the IRS suspends other collection activities, which means no more threatening letters or collection calls while your case is under review. This breathing room alone is worth the effort for most people.

Question 4

Can the IRS still garnish my wages while applying for Fresh Start?

Accepted Answer

The IRS suspends other collection activities while your Fresh Start application is under review. This includes wage garnishments, bank levies, and asset seizures. However, this protection only applies once your complete application is submitted and accepted for review. If you're currently facing garnishment, it's critical to act quickly to get this protection in place. Once you are on an installment plan, you will no longer receive IRS collection letters or be susceptible to penalties. The key is getting your application submitted properly and completely to trigger these protections as soon as possible.

Question 5

What happens if I don't qualify for the Fresh Start Program?

Accepted Answer

Even if you don't qualify for the main Fresh Start options, other relief programs exist. You may qualify for "currently not collectible" status if you can't afford to pay without significant hardship, which doesn't make your debt go away but stops IRS collection efforts. Penalty abatement reduces the financial burden of late filing or payment penalties, with relief options for those with a history of compliance facing unexpected financial hardship, potentially saving thousands of dollars. The worst thing you can do is nothing. Even if you don't qualify for debt reduction, establishing any payment arrangement stops the accumulation of additional penalties and shows good faith effort to resolve your debt.

Question 6

Should I try to handle the Fresh Start Program application myself?

Accepted Answer

Not all taxpayers qualify for an Offer in Compromise, and the difference between those that qualify and those that don't is often the quality of the offer submitted, with the IRS having voluminous rules that if not met will result in summary rejection. Accurately completing the offer paperwork and correctly reporting your assets and income can have a dramatic effect on the likelihood that your offer will be accepted - the right help in this situation can be a game changer. Would you go to court without a lawyer? Of course not. 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 getting it wrong. One mistake can cost you thousands in additional penalties or result in outright rejection of your application.

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. Payment accepted: Mastercard, Visa (4% convenience fee applies)

IRS Fresh Start Program Quicktown, PA