Question 1

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

Accepted Answer

You likely qualify if you owe less than $50,000 in total tax debt, have filed all required tax returns, and can demonstrate financial hardship or inability to pay the full amount. The program is specifically designed for individual taxpayers and small businesses who've fallen behind due to circumstances beyond their control. The key is proving to the IRS that you either cannot pay the full amount or that accepting a reduced payment is in their best interest. We evaluate factors like your income, necessary living expenses, asset equity, and future earning potential to build the strongest possible case. Most Scotrun residents we work with are surprised to learn they qualify for more relief than they expected. The IRS has actually made the program more accessible over the years, not harder.

Question 2

What's the difference between an installment agreement and an Offer in Compromise?

Accepted Answer

An installment agreement lets you pay your full tax debt over time - up to 72 months in most cases. You're still paying everything you owe, but in manageable monthly payments that fit your budget. This is the easiest option to qualify for and works well if you can afford to pay the debt over time. An Offer in Compromise actually reduces the total amount you owe. You make a settlement offer based on your ability to pay, and if the IRS accepts it, you're done once you pay the agreed amount. This is harder to qualify for but can save you thousands. We determine which option makes the most sense based on your specific financial situation. Sometimes an installment agreement is the better choice even if you might qualify for an OIC, depending on the numbers involved.

Question 3

How long does the Fresh Start Program application process take?

Accepted Answer

Installment agreements typically get approved within 30-60 days if everything is properly documented. The IRS has streamlined this process significantly, especially for debts under $50,000. Offers in Compromise take longer - usually 6-12 months from start to finish. The IRS has to thoroughly review your financial situation and determine whether your offer represents the most they can reasonably expect to collect from you. Currently Not Collectible status can often be achieved within a few weeks if your financial hardship is clear and well-documented. The key with any of these programs is submitting complete, accurate information the first time to avoid delays and requests for additional documentation.

Question 4

Will the IRS stop collection actions while my Fresh Start application is being reviewed?

Accepted Answer

Yes, in most cases. Once you have an accepted installment agreement or your Offer in Compromise is under review, the IRS will generally halt collection activities like wage garnishments and bank levies. However, this protection isn't automatic - it depends on submitting the right paperwork correctly and maintaining compliance with any interim requirements. If you're already facing immediate collection action, we can often get emergency relief while we prepare your formal application. The key is acting quickly. The IRS moves fast when they decide to collect, but they'll also work with you if you're proactively trying to resolve the situation through proper channels. Waiting until your wages are being garnished makes everything more complicated and stressful.

Question 5

Can I apply for the Fresh Start Program if I haven't filed all my tax returns?

Accepted Answer

No, you must be current on all required tax filings before the IRS will consider any Fresh Start relief options. This is a firm requirement they don't waive. The good news is that we can help you get caught up on unfiled returns quickly, often at the same time we're preparing your Fresh Start application. We know how to minimize the additional tax liability from unfiled returns and position everything for the best possible outcome. Many Scotrun clients come to us with both unfiled returns and existing tax debt. We handle both issues together as part of a comprehensive resolution strategy. Getting the returns filed actually strengthens your Fresh Start application by showing good faith effort to comply.

Question 6

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

Accepted Answer

Rejection doesn't mean you're out of options. Often, applications get rejected for technical reasons or because additional documentation is needed. We can usually address these issues and resubmit. If your initial approach doesn't work, we evaluate alternative strategies. Maybe an installment agreement makes more sense than an Offer in Compromise, or perhaps we need to gather more evidence of financial hardship. Every case has multiple potential solutions. The worst thing you can do is give up and ignore the problem. The IRS will eventually take collection action, and your options become much more limited once that happens. We've successfully helped clients who were initially rejected get approved on appeal or through different program options. Would you go to court without a lawyer? Of course not! Then why would you go before the IRS without a trusted tax professional?

End the sleepless nights. Call 570-630-0201 or text 570-470-5228 today. All County Tax Resolution will stand between you and the IRS, negotiate the lowest legal settlement, and give you the fresh start you deserve. We accept Mastercard and Visa with a 4% convenience fee.

IRS Fresh Start Program Scotrun, PA