Question 1

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

Accepted Answer

The savings depend on your specific financial situation, but the results can be dramatic. Some taxpayers qualify for Offers in Compromise that settle their entire debt for as little as 10% of what they originally owed. For payment plans, you might qualify for monthly payments as low as $25-50 depending on your income and expenses. The Fresh Start Program also increased the debt threshold for tax liens from $5,000 to $10,000, and made it easier to get existing liens withdrawn once you enter a payment agreement. If you qualify for penalty abatement, we can eliminate the failure-to-file and failure-to-pay penalties that often double or triple your original tax debt. Every case is different, which is why we provide a thorough evaluation during your consultation to determine exactly what relief you qualify for.

Question 2

Do I really qualify for the Fresh Start Program if I owe a lot of money?

Accepted Answer

The Fresh Start Program is specifically designed for taxpayers who owe substantial amounts they can't pay in full. You can qualify for streamlined installment agreements if you owe up to $50,000 in combined taxes, penalties, and interest. For Offers in Compromise, there's no maximum debt limit—it's based on your ability to pay. If you can demonstrate financial hardship or that paying the full amount would create economic difficulty, you may qualify regardless of how much you owe. The key factors are being current on all required tax filings and proving you can't pay the full amount without significant financial hardship. Even if you owe six figures, you might qualify for a settlement that's a fraction of your total debt. That's why a professional evaluation is crucial—many taxpayers assume they don't qualify when they actually do.

Question 3

How long does the Fresh Start Program process take to complete?

Accepted Answer

Most installment agreements can be approved within 30-60 days once we submit your application. These are often the fastest option if you can afford monthly payments but just need more time to pay. Offers in Compromise typically take 6-12 months for the IRS to review and approve. During this time, collection activities are suspended, so you're protected while we wait for their decision. Penalty abatement requests can often be resolved within 60-90 days, especially if you have a good compliance history or can demonstrate reasonable cause for the penalties. The timeline depends on the complexity of your case and how quickly the IRS responds, but we stay on top of your case to ensure nothing gets delayed unnecessarily.

Question 4

What happens if the IRS rejects my Fresh Start application?

Accepted Answer

If your initial application is rejected, we don't give up. Most rejections happen because of missing information or incorrect financial calculations, not because you truly don't qualify. We can resubmit your application with additional documentation, appeal the decision, or pivot to a different Fresh Start option that better fits your situation. For example, if your Offer in Compromise is rejected, you might still qualify for a payment plan or Currently Not Collectible status. The IRS also has an appeals process that allows us to present your case to a different examiner. Many cases that are initially rejected get approved on appeal when presented properly. Having professional representation significantly increases your chances of success because we know how to navigate these processes and present your case in the best possible light.

Question 5

Will using the Fresh Start Program hurt my credit score?

Accepted Answer

The Fresh Start Program is actually designed to help protect your credit. One of the major improvements was raising the threshold for tax liens from $5,000 to $10,000, which means fewer people get liens on their credit reports. If you already have a tax lien, entering a Direct Debit Installment Agreement can qualify you for lien withdrawal, which removes it from your credit report entirely. This is a huge benefit that many taxpayers don't know about. Payment plans through the Fresh Start Program don't show up on your credit report as long as you make your payments on time. Compare that to letting your tax debt go unresolved, which can result in liens, levies, and other collection actions that definitely damage your credit. Resolving your tax debt through the Fresh Start Program is almost always better for your credit than ignoring the problem.

Question 6

Can I apply for the Fresh Start Program myself or do I need professional help?

Accepted Answer

You can technically apply yourself, but the success rates are dramatically different with professional representation. The IRS's own statistics show that taxpayers with professional representation are far more likely to get their applications approved. The application process involves complex financial calculations, detailed documentation requirements, and strategic decisions about which program option gives you the best outcome. One mistake in your financial analysis or missing document can result in rejection. More importantly, we know how to present your case in the strongest possible light and negotiate with IRS agents on your behalf. We also handle all communication with the IRS, so you don't have to deal with their intimidating collection tactics while your case is pending. Given what's at stake—potentially tens of thousands of dollars in tax debt—professional representation is usually worth every penny.

IRS Fresh Start Program Richmondale, PA