Question 1

How do I know if I qualify for the IRS Fresh Start Program in Pennsylvania?

Accepted Answer

You may qualify if you owe $50,000 or less in combined taxes, penalties, and interest, and can demonstrate financial hardship or inability to pay the full amount. You must be current on all required tax filings and able to pay off any remaining balance within the agreed timeframe.

Self-employed individuals may qualify if they show a 25% or more drop in income. The key is proving to the IRS that you genuinely cannot pay your full tax liability without creating economic hardship. We evaluate your specific situation during our free consultation to determine your best options.

Question 2

Can the Fresh Start Program really reduce my tax debt by 90%?

Accepted Answer

Yes, through the Offer in Compromise option, eligible taxpayers can potentially reduce their tax debt by 90% or more. However, this requires meeting strict IRS criteria and proving you cannot pay the full amount now or in the foreseeable future.

The IRS considers your current income, assets, expenses, and future earning potential. They'll only accept an offer that represents the most they can reasonably expect to collect. Not everyone qualifies, which is why professional evaluation is crucial to determine if this option makes sense for your situation.

Question 3

What happens if I can't make my installment agreement payments?

Accepted Answer

If you default on an installment agreement, the IRS can immediately resume collection activities including wage garnishments and bank levies. However, you may be able to modify your agreement if your financial situation has changed.

We help our clients avoid default by setting up realistic payment plans from the start. If circumstances change, we can request a modification or even temporarily suspend payments through currently-not-collectible status. The key is communicating with the IRS before you miss payments, not after.

Question 4

How long does the Fresh Start Program application process take?

Accepted Answer

The timeline varies depending on which relief option you're pursuing. Installment agreements can often be approved within a few weeks, while Offer in Compromise applications typically take 6-12 months for the IRS to review and respond.

During this time, the IRS generally suspends collection activities, giving you breathing room. We handle all communications and follow up regularly to ensure your case keeps moving. Having professional representation often speeds up the process because we know exactly what documentation the IRS requires and how to present your case effectively.

Question 5

Will applying for tax relief hurt my credit score?

Accepted Answer

The Fresh Start Program itself doesn't directly impact your credit score. However, existing tax liens may already be affecting your credit. The good news is that the program raised the threshold for new liens from $5,000 to $10,000, and makes it easier to get liens withdrawn once you're in compliance.

If you currently have tax liens, successfully completing a Fresh Start program can lead to lien withdrawal, which should improve your credit score. This is much better than letting tax debt spiral out of control, which almost certainly leads to liens, levies, and other collection actions that devastate your credit.

Question 6

Why shouldn't I just try to handle this myself with the IRS?

Accepted Answer

You can attempt to work directly with the IRS, but the process is complex and one mistake can cost you thousands. IRS agents are trained negotiators whose job is to collect the maximum amount possible. They're not looking out for your best interests.

We know exactly how to present your financial information to qualify for maximum relief. We understand which IRS programs you're eligible for and how to navigate the bureaucracy efficiently. Most importantly, we stand between you and the IRS throughout the entire process. Would you go to court without a lawyer? Then why face the IRS without a trusted tax professional?

IRS Fresh Start Program Rileyville, PA