Question 1

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

Accepted Answer

The reduction depends on your specific program option and financial situation. Installment agreements don't reduce the debt but make it manageable with payments up to six years. Offer in Compromise can settle your debt for 10-20% of what you owe if you can prove paying the full amount would create financial hardship. Some taxpayers qualify for 100% debt forgiveness through this program. Penalty abatement removes late filing and payment penalties, which can represent a significant portion of your total debt. Currently Not Collectible status doesn't reduce the debt but stops all collection actions until your financial situation improves.

Question 2

Do I qualify for the IRS Fresh Start Program in Rushville?

Accepted Answer

You may qualify if you owe $50,000 or less in combined taxes, penalties, and interest, have filed all required tax returns, and can demonstrate financial hardship or inability to pay the full amount. Self-employed individuals in Rushville who've experienced a 25% or greater income decline have additional qualification paths. Small businesses owing $25,000 or less also have streamlined options available. The only way to know for certain is through a professional evaluation of your specific situation. We offer free consultations to assess your eligibility and explain your options without any obligation.

Question 3

Will the IRS stop collection actions while my case is pending?

Accepted Answer

Yes, in most cases collection actions pause or stop once you're approved for a Fresh Start program or have professional representation negotiating on your behalf. If you're approved for an Offer in Compromise, installment agreement, or Currently Not Collectible status, wage garnishments and bank levies typically stop. Tax liens may be withdrawn under certain conditions. However, you must stay compliant with current tax obligations during this period. Missing new filings or payments can void your agreement and restart collection actions. Professional representation helps ensure you meet all requirements.

Question 4

How long does the IRS Fresh Start Program application process take?

Accepted Answer

The timeline varies by program type and complexity of your case. Streamlined installment agreements for qualifying taxpayers can be approved within weeks. Offer in Compromise applications typically take several months for IRS review and approval. During this time, collection actions generally stop, giving you breathing room. Currently Not Collectible status can be granted relatively quickly if you provide proper documentation of financial hardship. The key is having all required forms and financial documentation prepared correctly from the start, which is why professional help often speeds the process.

Question 5

What happens if I miss payments on my Fresh Start agreement?

Accepted Answer

Missing payments can lead to default, which reinstates penalties, interest, and collection actions. The IRS may cancel your agreement and pursue full collection of the original debt. This is why direct debit payments are strongly recommended—they prevent missed payments and may qualify you for additional benefits like lien withdrawal after three successful payments. If you anticipate payment difficulties, contact us immediately. Sometimes agreements can be modified before you default. However, the IRS is less willing to offer second chances, so staying compliant with your agreement terms is crucial.

Question 6

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

Accepted Answer

While you can apply directly to the IRS, professional representation significantly improves your chances of approval and maximizes potential savings. We understand which program option works best for your situation, how to present financial information favorably, and which arguments persuade IRS agents. We also handle all correspondence and negotiations. Would you go to court without a lawyer? The same principle applies here. The IRS has trained agents and attorneys working against you. Having experienced representation levels the playing field and often saves far more than the professional fees cost.

IRS Fresh Start Program Rushville, PA