Question 1

What exactly is the IRS Fresh Start Program and how do I know if I qualify?

Accepted Answer

The IRS Fresh Start Program is a collection of official IRS policies created in 2011 to help struggling taxpayers manage their debt. It's not a scam or too-good-to-be-true offer—it's legitimate relief directly from the IRS.

You likely 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. Self-employed individuals may qualify if their income dropped 25% or more. The program specifically mandates that the IRS cannot collect more than you can reasonably afford to pay based on your actual financial situation.

Question 2

How much money can the Fresh Start Program actually save me?

Accepted Answer

Eligible taxpayers can reduce their tax debt by 90% or more through an Offer in Compromise, though results vary based on your specific financial circumstances. Even if you don't qualify for debt reduction, you can still save thousands through penalty abatement and affordable payment plans.

For example, if you owe $30,000 but can only afford $150 per month, a streamlined installment agreement might get you a manageable payment plan. If you're facing genuine financial hardship, an Offer in Compromise might settle that same $30,000 debt for $3,000 or less. The key is having a professional evaluate your case and pursue the option with maximum benefit.

Question 3

How long does it take to get approved for Fresh Start Program relief?

Accepted Answer

Timeline depends on which relief option fits your situation best. Streamlined installment agreements often get approved within 30-60 days since they require minimal paperwork and IRS review.

Offers in Compromise take longer—typically 6-12 months—because the IRS conducts a thorough financial analysis. But here's the good news: collection actions usually stop while your application is being processed. Currently-Not-Collectible status can provide immediate relief within 60-90 days, giving you breathing room while your financial situation improves.

Question 4

What if the IRS rejects my Fresh Start Program application?

Accepted Answer

Rejection doesn't mean you're out of options—it usually means the application needs corrections or a different approach. Many rejections happen because of incomplete paperwork, miscalculated financial information, or choosing the wrong relief option for your situation.

This is where professional representation becomes crucial. An experienced tax resolution specialist can identify exactly why your application was rejected and fix those specific issues. Sometimes a different Fresh Start Program option works better for your circumstances. The key is persistence and proper presentation—many successful cases require multiple attempts with professional guidance.

Question 5

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

Accepted Answer

You can apply yourself, but the success rate is dramatically lower without professional representation. The IRS has strict requirements for acceptable applications, and one mistake can mean automatic rejection.

Think about it this way: you're potentially saving tens of thousands of dollars. Professional representation usually pays for itself many times over through better results and faster processing. Tax professionals know exactly how to present your financial information for maximum benefit and can navigate IRS bureaucracy efficiently. Why risk leaving money on the table when expert help is available?

Question 6

Will applying for the Fresh Start Program stop IRS collection actions immediately?

Accepted Answer

Yes, properly submitted Fresh Start Program applications typically trigger an immediate suspension of most IRS collection activities, including wage garnishments, bank levies, and asset seizures. This protection lasts throughout the application review process.

However, the IRS may still file tax liens during this period, and the protection only covers tax years included in your application. If your application is accepted, collection actions remain suspended as long as you comply with the agreement terms. If you're currently facing imminent collection action, getting your application submitted quickly is crucial for immediate protection.

IRS Fresh Start Program Sierra View, PA