Question 1

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

Accepted Answer

The reduction depends on your specific financial situation, but many taxpayers see reductions of 70-90% through offers in compromise. The IRS accepts these offers when they believe it's the most they'll realistically collect from you. Your offer amount is based on your ability to pay, not the original debt. If you're earning $40,000 annually with basic living expenses and no significant assets, you might settle a $50,000 tax debt for $5,000-$8,000. We analyze your income, necessary expenses, and asset equity to calculate the lowest acceptable offer. Remember, the IRS would rather collect something than nothing. If your financial situation genuinely prevents full payment, they're often willing to accept a fraction of the debt to close your case.

Question 2

What if I haven't filed tax returns for several years?

Accepted Answer

Unfiled returns actually strengthen your Fresh Start Program application in many cases. The IRS requires current filing compliance before approving most relief programs, so we'll prepare and file your missing returns first. Often, these unfiled returns show refunds or lower balances than you expected, especially if you had taxes withheld from your paychecks. We've seen clients discover they actually owed less than they feared, or even had refunds coming. Filing these returns also stops the IRS from creating substitute returns with worst-case-scenario numbers. Their estimates assume no deductions and maximum tax liability, so your actual returns usually show a much lower debt. This becomes crucial leverage in negotiations.

Question 3

How long does the Fresh Start Program process take?

Accepted Answer

Most cases resolve within 90-120 days, though complex situations involving multiple years or business taxes may take longer. The timeline depends on which relief option you pursue and how quickly we can gather required documentation. Offer in compromise applications typically take 6-8 months for IRS review, but you're protected from collection actions during this period. Installment agreements and penalty abatements often approve within 30-60 days. Currently-not-collectible status can provide immediate relief while we work on permanent solutions. The key is starting the process quickly. Every month you wait, penalties and interest continue growing. Plus, some relief options have time limits—you generally can't request penalty abatement more than three years after the return due date.

Question 4

Will the IRS accept partial payment while my case is pending?

Accepted Answer

Yes, and making reasonable payments during negotiations actually strengthens your case. It demonstrates good faith and financial responsibility to IRS agents reviewing your application. For offer in compromise cases, you'll make an initial payment with your application, then continue monthly payments while the IRS reviews your case. These payments count toward your final settlement if approved. If rejected, they reduce your overall balance. With installment agreements, you can often start making proposed payments immediately, even before formal approval. This stops additional penalties and shows the IRS you're serious about resolving your debt. We'll help you determine an appropriate payment amount that fits your budget while advancing your case.

Question 5

What happens if the IRS rejects my Fresh Start application?

Accepted Answer

Rejection isn't the end—it's often the beginning of real negotiations. IRS rejection letters typically explain their reasoning, giving us valuable insight into what they'll accept. We can address their concerns and resubmit with stronger documentation. Many "rejections" are actually requests for additional information or clarification. The IRS might want updated financial statements, proof of expenses, or explanation of unusual circumstances. We handle these requests professionally and promptly. If your offer is truly rejected, you have appeal rights and can submit a new offer with different terms. Sometimes we'll pursue alternative relief like installment agreements or currently-not-collectible status while building a stronger case for future debt reduction. Every "no" gets us closer to the right "yes."

Question 6

Can I handle the Fresh Start Program application myself?

Accepted Answer

Technically yes, but it's rarely advisable. IRS forms are complex, and mistakes can delay your case by months or result in rejection. More importantly, you might qualify for more relief than you realize, but miss opportunities without professional guidance. The IRS doesn't advocate for you—they're looking for reasons to deny applications or minimize settlements. We know which expenses they accept, how to present financial hardship effectively, and which documentation strengthens your case. This expertise often means the difference between a $20,000 settlement and a $5,000 settlement. Think of it this way: would you represent yourself in court? Tax resolution involves federal law, IRS procedures, and negotiation tactics that most people encounter once in their lifetime. We do this every day. The cost of professional representation typically pays for itself through better outcomes and faster resolution.

IRS Fresh Start Program Saylorsburg, PA