Question 1

How much can I actually save with the IRS Fresh Start Program?

Accepted Answer

Taxpayers who apply and are considered eligible can significantly reduce their federal tax debt; in some circumstances, they may be able to reduce 90% or more of what they owe. The exact savings depend on your financial situation, but we've seen clients settle $50,000 debts for $5,000 or less.

Your savings potential depends on your ability to pay, not the amount you owe. The Fresh Start Program mandates that the IRS cannot collect more than a taxpayer can pay, helping taxpayers reach an agreement and pay an amount they can reasonably afford. If you're facing financial hardship, you may qualify for Currently Not Collectible status, which stops collections entirely.

The key is acting quickly. Penalties and interest continue accumulating until you're in an approved program, so every month you wait costs you money. Would you go to court without a lawyer? Of course not! Then why would you go before the IRS without a trusted tax professional?

Question 2

Do I qualify for the Fresh Start Program in Pennsylvania?

Accepted Answer

Taxpayers must owe $50,000 or less in tax debt to be eligible for a streamlined installment agreement, but higher debts may still qualify for other options. To be eligible, you must be current on all tax filings - any unfiled tax returns must be submitted before you can apply for relief.

Basic qualifications include being self-employed with a 25% drop in income, single with income less than $100,000, or married with income less than $200,000. However, these aren't hard rules - each case is evaluated individually based on your complete financial picture.

The most important requirement is demonstrating financial hardship or inability to pay the full amount. We help determine your eligibility during our free consultation and identify the best relief option for your specific situation. Payment options include Mastercard and Visa with a 4% convenience fee.

Question 3

How long does the Fresh Start Program application process take?

Accepted Answer

The timeline varies depending on which option you pursue and how quickly you provide required documentation. Streamlined installment agreements can be approved within 30-60 days since they require minimal financial disclosure. This is a significant increase from previous limits and comes with a streamlined approval process with reduced financial documentation required.

Offer in Compromise applications typically take 6-24 months for final resolution. Your offer is automatically accepted if the IRS doesn't make a determination within two years of the IRS receipt date. During this time, collection actions are suspended, giving you immediate relief from threatening letters and calls.

We expedite the process by ensuring all paperwork is completed correctly the first time. Many applications get delayed or rejected due to missing information or calculation errors - problems we prevent through careful preparation and review. You can also text us at 570-470-5228 for quick updates on your case.

Question 4

Will applying for Fresh Start relief hurt my credit score?

Accepted Answer

The Fresh Start Program itself doesn't directly impact your credit score, but existing tax liens already on your credit report will remain until resolved. The IRS has made it easier to get liens withdrawn after paying tax debt or setting up a direct debit installment agreement.

Actually entering a Fresh Start program often improves your financial situation by stopping additional penalties and interest. Once you're on an installment plan, you will no longer receive IRS collection letters or be susceptible to penalties, and it's a great way to show the IRS that you are willing to resolve your debt.

The bigger credit threat is ignoring tax debt. Unpaid taxes can result in liens, levies, and wage garnishments that severely damage your credit. Getting into a Fresh Start program prevents these more serious collection actions that would hurt your credit much worse than the program itself.

Question 5

Can I handle the Fresh Start Program application myself?

Accepted Answer

Technically yes, but it's extremely risky. Many companies charge big fees to prepare applications that they know the IRS will deny, and applying does not guarantee that the IRS will accept the taxpayer's offer. The IRS rejects most applications due to calculation errors, missing documentation, or unrealistic offers.

Numerous taxpayers are denied resolution due to lack of awareness regarding what aligns with the IRS's criteria, and failing to grasp acceptable valuation techniques can result in substantial financial setbacks costing thousands of dollars. Professional representation significantly increases your chances of approval and maximizes your savings.

Would you go to court without a lawyer? Of course not! Then why would you go before the IRS without a trusted tax professional? We know the system, speak their language, and have relationships with IRS personnel that help expedite your case.

Question 6

What happens if my Fresh Start application gets rejected?

Accepted Answer

Rejection isn't the end - it's often just the beginning of negotiations. We can appeal the decision, provide additional documentation, or modify your offer based on the IRS's feedback. Many successful resolutions require multiple rounds of negotiation to achieve the best outcome.

Your non-refundable payments and fees are applied to the tax liability, and you may designate payments to a specific tax year and tax debt. This means even if your initial offer is rejected, you've still reduced your overall debt through the application payments.

The key is having professional representation throughout the process. We know how to address IRS objections, provide compelling documentation, and present alternative solutions. What looks like a rejection to you might just be the IRS asking for more information or a different approach - situations we handle routinely for our clients.

IRS Fresh Start Program Springville, PA