Question 1

How much can I actually save through the IRS Fresh Start Program?

Accepted Answer

The amount you can save depends on your specific financial situation, but qualifying taxpayers often reduce their tax debt by 50-90% through an Offer in Compromise. The IRS will generally accept an offer that represents the most they can reasonably expect to collect from you. For example, if you owe $50,000 but can only afford $150 per month payments, and your assets have little equity, your offer might be accepted for $10,000 or less. The key is proving to the IRS that collecting the full amount would create genuine financial hardship. We analyze your income, expenses, and assets using the same formulas the IRS uses, then structure your offer for maximum acceptance probability. Not everyone qualifies for massive reductions, but most people qualify for some form of meaningful relief.

Question 2

What happens if the IRS rejects my Fresh Start application?

Accepted Answer

IRS rejection doesn't mean you're out of options. Often, rejections happen because the application wasn't properly prepared or the wrong relief option was chosen initially. We can appeal the decision, submit additional documentation, or pivot to a different Fresh Start option. For instance, if your Offer in Compromise gets rejected, you might still qualify for a streamlined installment agreement or Currently Not Collectible status. Each option has different qualification criteria, so rejection from one program doesn't disqualify you from others. The key is having experienced representation from the start. Our success rate is significantly higher than taxpayers who try to handle Fresh Start applications themselves, precisely because we know how to present your case properly the first time.

Question 3

How long does the IRS Fresh Start Program process take?

Accepted Answer

Most Fresh Start applications take 4-6 months to process, though complex cases can take longer. Installment agreements are typically approved within 30-60 days, while Offers in Compromise average 6-8 months due to more extensive IRS review. During this time, IRS collection activities are generally suspended, meaning no levies, garnishments, or seizures while your application is pending. This gives you breathing room to get your finances organized without constant collection pressure. We keep you updated throughout the process and handle all IRS correspondence. If the IRS requests additional information or documentation, we respond promptly to avoid delays. Our goal is always to resolve your case as quickly as possible while securing the best possible outcome.

Question 4

Do I need to be current on all my tax filings to qualify?

Accepted Answer

Yes, you must be current on all required tax filings to qualify for any Fresh Start relief option. This means filing all missing returns before your application can be processed. The IRS won't consider relief applications from taxpayers who aren't in compliance with filing requirements. If you have unfiled returns, we can prepare and file them as part of your overall resolution strategy. Sometimes filing missing returns actually improves your position by showing refunds that can offset your debt or by revealing that you owe less than the IRS estimated. Don't let unfiled returns stop you from seeking relief. We handle the entire process, from preparing missing returns to negotiating your final settlement. Getting compliant is often the first step toward significant debt reduction.

Question 5

Can the Fresh Start Program help with Pennsylvania state tax debt too?

Accepted Answer

The IRS Fresh Start Program only applies to federal tax debt, but we handle Pennsylvania state tax resolution simultaneously. Pennsylvania's collection process moves faster than federal enforcement, so coordinating both is crucial for Pennsylvania residents. Pennsylvania offers its own relief options including Deferred Payment Plans and limited Offers in Compromise. However, the state's qualification criteria are stricter than federal options, and Pennsylvania has no statute of limitations on tax collection. We develop comprehensive strategies that address both federal and state tax problems together. This prevents you from solving your IRS problem only to face aggressive Pennsylvania collection actions. Our local expertise in Pennsylvania tax law gives you advantages that national firms simply can't provide.

Question 6

What if I can't afford to pay anything right now?

Accepted Answer

Currently Not Collectible status might be your best option if you're facing severe financial hardship. This temporarily stops all IRS collection activities while you get back on your feet financially. The IRS reviews your status periodically, but collection remains suspended as long as your hardship continues. To qualify, your monthly income must be at or below IRS-established living expense standards for your family size and geographic area. You'll need to provide detailed financial documentation proving that paying your tax debt would prevent you from meeting basic living expenses. Even in Currently Not Collectible status, interest continues to accrue on your debt, and the IRS can still file liens. However, this option provides immediate relief from collection pressure and gives you time to improve your financial situation before pursuing other Fresh Start options. 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 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 Reeders, PA