Question 1

How much will the Fresh Start Program actually reduce what I owe?

Accepted Answer

It depends on your financial situation, but the reductions can be dramatic. We've seen clients cut their debt by 90% through Offers in Compromise. Others save tens of thousands through penalty abatement alone. The key is having someone who knows how to present your case properly. The IRS uses specific formulas to determine what they'll accept, and small details make huge differences in the outcome. For example, how you report your monthly expenses can change your settlement amount by $50,000 or more. That's why DIY attempts usually fail - you don't know what you don't know, and the stakes are too high to guess.

Question 2

Can I still qualify if I owe more than $50,000 in taxes?

Accepted Answer

Absolutely. The $50,000 limit only applies to streamlined installment agreements, which are the simplest payment plans. For larger debts, you'll need more documentation, but all Fresh Start options remain available. Some of our biggest success stories involve clients who owed six figures. The more you owe, the more the IRS pays attention to your case, which actually works in your favor if you have proper representation. What matters isn't the amount you owe - it's whether you can demonstrate financial hardship or inability to pay the full amount. We've helped clients owing $500,000 settle for $15,000 because we knew how to prove their case.

Question 3

Will applying for Fresh Start stop wage garnishments immediately?

Accepted Answer

Yes, submitting certain Fresh Start applications triggers an automatic stay of collection activities. This includes stopping wage garnishments, bank levies, and asset seizures while your case is being reviewed. The protection kicks in as soon as we file your properly completed application. However, if the IRS has already seized money from your bank account, getting it back is much more difficult. That's why timing matters so much. The sooner you act, the more options you have. Once they start taking your money, you're playing defense instead of offense, and that's always a weaker position.

Question 4

How long does the Fresh Start application process take?

Accepted Answer

Simple installment agreements typically get approved within 30-60 days. Offers in Compromise take longer - usually 6-12 months - because the IRS reviews them more carefully. During the review period, collection activities are suspended, which gives you immediate relief even while you wait for final approval. You can breathe again while we handle the negotiations. The biggest factor affecting timing is having complete, accurate documentation from day one. Missing paperwork or errors add months to the process. That's why we prepare everything meticulously before submitting anything.

Question 5

What if the IRS rejects my Fresh Start application?

Accepted Answer

Rejection isn't the end of the road. You have appeal rights, and we can request review by the IRS Appeals Office, which often takes a fresh look at cases with different perspective. Sometimes rejection happens because of missing information or presentation issues in the original application. We can resubmit with corrections or additional documentation that addresses their specific concerns. In many cases, rejection of one program opens doors to others. If an Offer in Compromise gets rejected, you might qualify for partial payment installment agreements or Currently Not Collectible status instead.

Question 6

Should I try to handle the Fresh Start Program myself?

Accepted Answer

Would you go to court without a lawyer? Of course not. Then why would you face the IRS without a trusted tax professional? The forms are complex, the stakes are high, and one mistake means automatic rejection. The IRS isn't trying to help you pay less. They want every penny you owe, plus penalties and interest. You need someone on your side who understands their tactics and knows how to counter them effectively. We've seen too many people try the DIY approach, get rejected, and then come to us after wasting months and making their situation worse. Don't let that be you. End the sleepless nights. Call 570-630-0201 or book online today.

IRS Fresh Start Program South Sterling, PA