Question 1

How much does the IRS Fresh Start Program actually cost to apply?

Accepted Answer

The IRS Fresh Start Program itself doesn't have a cost—it's a collection of official IRS relief options. However, some components have application fees. For example, an Offer in Compromise costs $205 to apply, though low-income taxpayers can get this fee waived.The real cost comes from professional representation, and honestly, you need it. The IRS designed these programs to be complex on purpose. One mistake on Form 656, one missed deadline, or one incomplete financial disclosure can sink your entire case. We've seen people spend months trying to do it themselves, only to get rejected and end up owing even more in penalties and interest.Our fees are transparent and based on the complexity of your case. Most clients save far more than they pay in professional fees, especially when you consider what happens if you mess it up on your own.

Question 2

Can I really get my tax debt reduced by 90% or more?

Accepted Answer

Yes, but only through an Offer in Compromise, and only if you truly qualify. The IRS doesn't just hand out 90% reductions because you ask nicely. They have specific formulas based on your income, expenses, assets, and future earning potential.Here's the reality: most people who qualify for massive debt reductions are in genuinely dire financial situations. We're talking about people who are unemployed, disabled, or facing other serious hardships. If you have steady income and assets, you're more likely looking at installment agreements or penalty abatements.That said, we've negotiated settlements that saved clients tens of thousands of dollars. The key is presenting your case properly and knowing which program gives you the best outcome. Sometimes the biggest savings come from stopping penalties and interest, not necessarily reducing the principal balance.

Question 3

What happens if I owe both federal and Pennsylvania state taxes?

Accepted Answer

You'll need to address both separately because they're completely different systems. The IRS Fresh Start Program only covers federal taxes. For Pennsylvania state taxes, you'll need to work with the Pennsylvania Department of Revenue, which has its own payment plan options and settlement programs.Pennsylvania has gotten tougher with tax collection in recent years. They offer Deferred Payment Plans, but the terms aren't as generous as federal options. The first payment is typically 20% of what you owe, with the balance spread over five months. If you can't meet those terms, they'll send your case to a collection agency.The good news is we handle both federal and state tax problems. We know the Pennsylvania Department of Revenue's procedures, and we can often coordinate resolutions to minimize your total monthly payments. Sometimes resolving your federal debt first gives you more breathing room to handle state obligations.

Question 4

How long does the Fresh Start Program application process take?

Accepted Answer

It depends on which program you're applying for. Installment agreements are usually the fastest—we can often get approval within 30-60 days. Penalty abatements can be processed relatively quickly if you have clear reasonable cause documentation.Offers in Compromise take much longer, typically 6-12 months or more. The IRS has to verify all your financial information, and they're not in any hurry. During this time, collection actions are suspended, which gives you breathing room, but you need to stay current on any new tax obligations.Currently Not Collectible status can be processed fairly quickly, but it's temporary. The IRS reviews your financial situation periodically and can resume collection actions if your circumstances improve. The key is using this time wisely to either improve your financial situation or transition to a more permanent solution.

Question 5

Will applying for the Fresh Start Program hurt my credit score?

Accepted Answer

The application itself won't hurt your credit, but the underlying tax problems already have. If the IRS has filed tax liens, those are already showing up on your credit report and doing serious damage. The good news is that the Fresh Start Program made it easier to get liens removed.Under current rules, the IRS generally won't file a lien until you owe $10,000 or more, up from the old $5,000 threshold. If you already have liens, we can often get them withdrawn once you enter a qualifying payment plan and make three consecutive payments.Here's something most people don't realize: resolving your tax debt properly can actually improve your credit over time. Once liens are removed and you're in compliance, you eliminate a major negative factor. Plus, you'll have more disposable income to pay other bills on time, which helps your overall credit profile.

Question 6

What if I haven't filed tax returns for several years?

Accepted Answer

You need to file all missing returns before you can qualify for any Fresh Start relief. This is non-negotiable. The IRS won't even consider your case until you're current on all required filings. But here's the thing—unfiled returns often work in your favor once we prepare them properly.The IRS creates substitute returns for people who don't file, and they're designed to maximize what you owe. They don't include deductions you're entitled to, they don't account for business expenses, and they don't consider exemptions. When we prepare your actual returns, you often owe much less than the IRS thinks you do.We handle the entire process of getting you current on filings. We can often negotiate penalty abatements for the failure-to-file penalties, especially if you have reasonable cause. Once you're current, we can move forward with Fresh Start relief for whatever balance remains. The key is acting now—every month you wait, the penalties and interest keep growing.

IRS Fresh Start Program South Gibson, PA