Question 1

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

Accepted Answer

You must owe $50,000 or less in combined taxes, penalties, and interest, be current on all required tax filings, and demonstrate financial hardship. Self-employed individuals must show a 25% decline in income to qualify for certain benefits. The key is proving you cannot pay your full tax debt without causing economic hardship. We analyze your monthly income against necessary living expenses to build a compelling case for relief. Even if you're slightly over the $50,000 limit, paying down your balance can make you eligible. Most Pennsylvania taxpayers who contact us qualify for some form of relief, whether through the Fresh Start Program or alternative resolution methods.

Question 2

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

Accepted Answer

Eligible taxpayers may reduce their federal tax debt by up to 90%, but the actual amount depends on your specific financial situation. The IRS evaluates your income, assets, and expenses to determine the most you can afford to pay. For example, if you owe $25,000 but can only afford $100 monthly payments based on your income and necessary expenses, an Offer in Compromise might settle your debt for $5,000-$8,000. Penalty abatement alone can often reduce your total debt by 20-40% by removing late payment and failure-to-file penalties. The program isn't about getting something for nothing—it's about paying what you can reasonably afford based on your actual financial capacity.

Question 3

Will I still owe money after completing the Fresh Start Program?

Accepted Answer

This depends on which relief option you qualify for and choose. Offer in Compromise allows you to settle your debt for less than the full amount owed, meaning you'll have no remaining balance once accepted and paid. Installment Agreements require you to pay the full debt over time through monthly payments, though penalty abatement can significantly reduce the total amount. Currently-Not-Collectible status temporarily stops collections but doesn't eliminate the debt. We'll explain exactly what each option means for your specific situation during your free consultation. Our goal is to find the solution that provides maximum relief while ensuring you can successfully complete the program requirements.

Question 4

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

Accepted Answer

Timeline varies by the type of relief you're seeking. Streamlined installment agreements for debts under $50,000 have reduced documentation requirements and faster approval, often processing within 30-60 days. Offer in Compromise applications typically take 6-12 months as the IRS thoroughly reviews your financial information. However, taxpayers can now apply for Offer in Compromise online for the first time, which may speed up the process. Penalty abatement requests can often be processed within 60-90 days. We handle all communication with the IRS during this time, so you won't receive collection letters or calls while your application is pending.

Question 5

What happens if the IRS rejects my Fresh Start Program application?

Accepted Answer

Rejection doesn't mean you're out of options. We can appeal the decision, provide additional documentation, or explore alternative relief methods. Sometimes the IRS requests more financial information or proposes a different settlement amount than originally offered. Professional tax advocates can negotiate custom installment agreements with longer payment periods or lower monthly payments than standard IRS agreements. We can also pursue penalty abatement, Currently-Not-Collectible status, or emergency collection relief depending on your circumstances. The key is having experienced representation who understands IRS procedures and can present your case effectively. Many applications are initially rejected due to incomplete documentation or improper presentation rather than actual ineligibility.

Question 6

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

Accepted Answer

The IRS will tell you the "Fresh Start Program" doesn't exist as a single application because it's actually a collection of different relief options with varying requirements and procedures. Would you go to court without a lawyer? Of course not. Then why would you go before the IRS without a trusted tax professional? One mistake on Form 433-A or Form 656 can result in rejection and months of delays while penalties and interest continue accumulating. We know which documentation the IRS requires, how to present your financial information favorably, and which relief option provides the best outcome for your situation. The cost of professional representation is typically far less than the additional penalties and interest you'll pay trying to handle it yourself.

IRS Fresh Start Program Sandyville, PA