Question 1

Do I really qualify for the IRS Fresh Start Program in Pennsylvania?

Accepted Answer

Most people qualify if they owe $50,000 or less and are current on their tax filings. The program was specifically designed for taxpayers who fell behind due to financial hardship - exactly the situation many South Montrose residents face. You don't need perfect credit or a high income. In fact, financial struggle often strengthens your case. The IRS recognizes that collecting nothing is worse than collecting something, so they're motivated to work with you. The key is acting quickly. The longer you wait, the more penalties and interest accumulate, potentially pushing you over the $50,000 threshold. We've helped clients who thought they had no options discover they qualified for significant debt reduction.

Question 2

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

Accepted Answer

Debt reduction varies dramatically based on your financial situation. Some clients qualify for Offers in Compromise that reduce their debt by 80-90%. Others get installment plans that stop penalties from growing while they pay off the principal. The IRS uses a specific formula based on your income, assets, and necessary living expenses. If you can't pay the full amount without creating financial hardship, they'll often accept less. We've seen $50,000 debts settled for $5,000, and $20,000 debts completely eliminated through penalty abatement. But even smaller reductions can be life-changing. Stopping wage garnishments alone can put hundreds of dollars back in your pocket every month. The exact amount depends on your unique circumstances, which is why we analyze every case individually.

Question 3

What happens if the IRS rejects my Fresh Start application?

Accepted Answer

There's no single "Fresh Start application" - that's marketing language that confuses people. The Fresh Start Program is actually a collection of existing IRS relief options made more accessible. Each option has its own application process and requirements. If one approach doesn't work, we try another. Rejected for an Offer in Compromise? We might pursue penalty abatement or an installment agreement instead. The IRS has multiple programs because they recognize that different situations require different solutions. Professional representation makes a huge difference in approval rates. We know exactly how to present your financial information, which forms to file, and how to respond to IRS requests. Most people who get rejected tried to handle it themselves without understanding the complex requirements.

Question 4

How long does the IRS Fresh Start process take in Pennsylvania?

Accepted Answer

Timeline depends on which relief option you pursue. Installment agreements often get approved within 30-60 days. Currently Not Collectible status can happen even faster if you're facing immediate hardship. Offers in Compromise take longer - typically 6-12 months for the IRS to review and decide. But here's the key: once you submit a valid application, collection activities usually stop. No more wage garnishments or bank levies while your case is pending. We expedite everything possible by submitting complete, accurate applications the first time. Missing documents or errors can add months to the process. Our experience means we know exactly what the IRS wants to see and how to present it properly.

Question 5

Can I handle the Fresh Start Program myself without professional help?

Accepted Answer

You can try, but the success rates are dramatically different. The IRS accepts about 40% of professionally prepared Offers in Compromise but only 20% of self-prepared applications. That difference represents thousands of dollars and months of stress. The forms are complex and the financial analysis requires specific knowledge of IRS procedures. One mistake can get your application rejected, and you'll lose your application fee plus months of time. Meanwhile, penalties and interest keep growing. Professional representation also stops the intimidating phone calls and letters. You won't have to deal with IRS agents yourself or worry about saying something that hurts your case. We become your official representatives and handle all communication. Would you go to court without a lawyer? Then why face the IRS without a trusted tax professional?

Question 6

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

Accepted Answer

Unfiled returns actually strengthen your Fresh Start case in many situations. The IRS can't accurately determine what you owe until all returns are filed, and they often overestimate your liability when returns are missing. We prepare and file all missing returns as part of the Fresh Start process. Often, you'll discover you owe less than you feared - especially if you're entitled to refunds in some years that can offset amounts owed in others. The IRS requires current filing compliance for most Fresh Start programs, but they're willing to work with you to get caught up. We've helped clients who were seven or eight years behind get completely current and then qualify for significant debt reduction. The key is addressing everything together as a comprehensive strategy rather than trying to tackle each year separately.

IRS Fresh Start Program South Montrose, PA