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, are current on all required tax filings, and can demonstrate financial hardship or inability to pay the full amount. Self-employed individuals need to show a 25% or more drop in income. The key is proving you genuinely cannot pay the full amount without creating financial hardship. We review your income, necessary expenses, and assets to determine eligibility. Even if you don't qualify for one option, you might qualify for another part of the program. During our free consultation, we evaluate your entire situation and tell you exactly which Fresh Start options are available to you. Don't guess about eligibility – let us review your case professionally.

Question 2

Can the Fresh Start Program actually eliminate my tax debt completely?

Accepted Answer

Yes, through an Offer in Compromise, but only if you meet strict financial criteria. The IRS will accept less than you owe if paying the full amount would create genuine financial hardship or if there's doubt about what you actually owe. Most people don't qualify for complete debt elimination, but the program offers other valuable relief. You might get penalty abatement that removes thousands in fees, installment agreements that make payments manageable, or currently not collectible status that stops all collection actions. The goal isn't necessarily to eliminate all debt, but to get you a solution you can actually live with. We negotiate the lowest legal settlement possible based on your specific financial situation.

Question 3

Will the IRS stop collection actions while I'm in the program?

Accepted Answer

Yes, most collection actions pause or stop once you're approved for Fresh Start relief options. If you enter an installment agreement, offer in compromise, or receive currently not collectible status, the IRS typically stops wage garnishments, bank levies, and other aggressive collection tactics. However, you must stay compliant with the agreement terms. Missing payments or failing to file required returns can restart collection actions. That's why we help you set up direct debit payments and stay on track with all requirements. The relief is real, but it requires following through on your obligations. We guide you through the entire process to ensure you maintain your protected status and avoid future problems.

Question 4

How long does the Fresh Start Program application process take?

Accepted Answer

The timeline varies depending on which relief option you pursue. Installment agreements can be approved within 30-60 days, while Offers in Compromise typically take 6-12 months or longer due to detailed financial review requirements. Currently Not Collectible status can be granted relatively quickly if you clearly demonstrate financial hardship. Penalty abatement requests usually process within 2-3 months, depending on your compliance history and the reasons for the penalties. We expedite the process by ensuring all paperwork is complete and accurate before submission. Incomplete applications cause delays, so our thorough preparation saves time. We also follow up regularly with the IRS to keep your case moving forward.

Question 5

What happens if I don't qualify for the Fresh Start Program?

Accepted Answer

Even if you don't qualify for Fresh Start options, other tax resolution strategies are available. We can negotiate custom installment agreements with longer payment terms, pursue audit reconsideration if your assessment was incorrect, or explore bankruptcy options if appropriate. Sometimes we can help you become eligible for Fresh Start by addressing compliance issues first. Filing missing returns, correcting errors, or updating your financial information might open up program options that weren't initially available. The key is having experienced representation that knows all available options, not just the Fresh Start Program. We evaluate every possible solution to get you the relief you need, regardless of which specific program provides it.

Question 6

Do I need a lawyer to apply for the Fresh Start Program?

Accepted Answer

While you can apply yourself, professional representation significantly increases your chances of success. The IRS receives thousands of applications, and those prepared by experienced tax professionals typically receive better outcomes and faster processing. We know exactly what documentation the IRS requires, how to present your financial information favorably, and which relief option gives you the best result. We also handle all communication with the IRS, protecting you from saying something that could hurt your case. The cost of professional help is usually far less than the additional taxes, penalties, and interest you'll pay without proper representation. Most clients save significantly more than our fees through better negotiated settlements and avoided mistakes.

IRS Fresh Start Program Smith Gap, PA