Question 1

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

Accepted Answer

Most taxpayers with debt under $50,000 automatically qualify for streamlined installment agreements. For Offers in Compromise, the IRS looks at your income, expenses, and ability to pay. The key factors include being current on all tax filings, demonstrating financial hardship, and having a legitimate reason you can't pay the full amount. Self-employed individuals who've experienced income drops of 25% or more often qualify for additional relief options. We'll review your specific situation during our free consultation and tell you exactly which programs you're eligible for. Don't assume you don't qualify—many Silver Lake residents are surprised to learn they have more options than they thought.

Question 2

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

Accepted Answer

The reduction depends on your financial situation and which program you qualify for. Offers in Compromise can reduce debt by 80-95% in many cases. We've seen clients settle $50,000 debts for less than $5,000. Penalty Abatement alone can save thousands by eliminating failure-to-file and failure-to-pay penalties. If you qualify for Currently Not Collectible status, the IRS may eventually write off your entire debt due to the 10-year collection statute. Even installment agreements provide relief by stopping penalties and interest from growing while you pay down the principal. The exact savings depend on your income, expenses, and assets, which we'll analyze during your consultation.

Question 3

Will the IRS stop collection actions while my case is being processed?

Accepted Answer

Yes, once we submit your application and establish representation, the IRS typically suspends collection activities. This means no more wage garnishments, bank levies, or asset seizures while we negotiate your resolution. However, interest continues to accrue during this time, which is why it's important to act quickly. The sooner we can get your case submitted, the sooner you're protected from collection actions. We'll also request immediate release of any existing levies or garnishments as part of our initial representation. Most clients experience relief from collection pressure within days of hiring us, not months.

Question 4

How long does the Fresh Start Program application process take?

Accepted Answer

Simple installment agreements can be approved within 30-60 days. More complex cases like Offers in Compromise typically take 6-12 months for the IRS to review and approve. The timeline depends on how quickly we can gather your financial documentation and how backlogged the IRS is with applications. We'll give you realistic expectations based on your specific case during our consultation. While the process takes time, remember that collection activities are typically suspended once we submit your application. This gives you immediate relief while we work toward a permanent resolution.

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, submit additional documentation, or explore alternative resolution strategies. Many cases that are initially rejected get approved on appeal with the right approach. Sometimes the IRS rejects applications due to incomplete paperwork or missing financial information rather than true ineligibility. We'll identify exactly why your case was rejected and address those issues. We can also pursue other relief options like partial payment installment agreements or Currently Not Collectible status. Our job is to find a solution that works, even if the first approach doesn't succeed.

Question 6

Should I try to handle my IRS problem myself instead of hiring professionals?

Accepted Answer

The IRS offers these programs directly, but the application process is complex and mistakes are costly. One wrong answer on Form 433 can disqualify you from programs that could save you thousands. Tax professionals know which financial information to emphasize and which documentation the IRS requires. We also know how to present your case in the most favorable light to maximize your chances of approval. Would you go to court without a lawyer? Of course not. Then why would you go before the IRS without a trusted tax professional? The stakes are too high to risk making mistakes that could cost you your home, business, or financial future.

IRS Fresh Start Program Silver Lake, PA