Question 1

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

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 may qualify with a 25% drop in income. The IRS looks at your current financial situation, not just your debt amount. Even if you make decent money, you could still qualify if paying the full debt would prevent you from meeting basic living expenses. We provide free consultations to evaluate your specific situation. We'll review your income, expenses, assets, and tax debt to determine which Fresh Start options give you the best chance of approval.

Question 2

What's the difference between an Offer in Compromise and payment plan?

Accepted Answer

An Offer in Compromise lets you settle your tax debt for less than you owe—sometimes 90% less. You pay a reduced amount and the IRS forgives the rest. However, qualification requirements are strict and you must prove financial hardship. A payment plan (installment agreement) means you pay the full amount over time in monthly payments. It's easier to qualify for, but you'll pay interest on the remaining balance. Streamlined agreements for debts under $50,000 require minimal financial disclosure. The best option depends on your financial situation. If you truly can't afford to pay the full debt even over time, an Offer in Compromise might be worth pursuing. If you can handle monthly payments, an installment agreement provides certainty and stops collection actions.

Question 3

How long does the Fresh Start Program application process take?

Accepted Answer

Offer in Compromise applications typically take 6-12 months for the IRS to review. During this time, collection activities are suspended, giving you breathing room. Streamlined installment agreements can be approved much faster, often within 30-60 days. The timeline depends partly on how well your application is prepared. Incomplete or incorrect paperwork causes delays and often rejection. That's why professional preparation matters—getting it right the first time saves months of back-and-forth with the IRS. We handle the entire process, from initial paperwork to final approval. We'll keep you updated throughout and handle any IRS requests for additional information, so you're not left wondering what's happening with your case.

Question 4

Will applying for Fresh Start programs stop IRS collection actions immediately?

Accepted Answer

Yes, once the IRS accepts your properly submitted Offer in Compromise application, they suspend most collection activities including liens and levies. This protection lasts throughout the review process, which can take 6-12 months. For installment agreements, collection actions typically stop once you're current on your payment plan. However, the IRS may still file liens for larger debts, though Fresh Start expanded the threshold to $10,000 before liens are typically filed. The key is submitting complete, accurate applications. Incomplete submissions don't trigger collection protection and may be rejected outright. Professional preparation ensures your application meets all IRS requirements and triggers these important protections immediately.

Question 5

What happens if my Fresh Start Program application gets rejected?

Accepted Answer

If your Offer in Compromise is rejected, you have 30 days to appeal the decision or request a hearing with the IRS Office of Appeals. Many rejections are due to paperwork errors or insufficient financial documentation, not actual ineligibility. You can also reapply if your financial situation changes or if the rejection was due to correctable issues. Sometimes the IRS will counter-offer with a higher settlement amount, which you can accept, reject, or negotiate further. We handle appeals and resubmissions when necessary. Our experience with IRS procedures helps identify why applications get rejected and how to address those issues. Even if your first attempt fails, there are usually other Fresh Start options or alternative resolution strategies available.

Question 6

How much does professional Fresh Start Program help cost?

Accepted Answer

We provide free initial consultations to evaluate your situation and explain your options. There's no obligation and no upfront fees. We believe you should understand your options before making any financial commitments. Professional fees vary based on the complexity of your case and which Fresh Start programs you pursue. Simple installment agreements cost less than complex Offer in Compromise applications that require extensive financial documentation and negotiation. We provide transparent fee quotes upfront, so you know exactly what to expect. Many clients find that professional help actually saves money by securing better settlements and avoiding costly mistakes that could lead to rejection and additional penalties. End the sleepless nights. Call 570-630-0201 or book online today. We will stand between you and the IRS, negotiate the lowest legal settlement, and give you the fresh start you deserve. Would you go to court without a lawyer? Of course not! Then why would you go before the IRS without a trusted tax professional?

IRS Fresh Start Program Shawnee on Delaware, PA