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. The IRS also considers your ability to pay the debt in full without causing economic strain.Self-employed individuals have additional qualification paths if they can show a 25% or more drop in income. The key is having your complete financial picture evaluated by a professional who understands exactly what the IRS looks for in Fresh Start applications.Don't assume you don't qualify based on your debt amount alone. Even if you owe more than $50,000, making a partial payment to reduce your balance below the threshold can open up Fresh Start options you might not have considered.

Question 2

What's the difference between an installment agreement and Offer in Compromise?

Accepted Answer

An installment agreement lets you pay your full tax debt over time in monthly payments, typically up to 72 months for qualifying taxpayers. You'll pay the entire amount you owe, but in manageable chunks that fit your budget.An Offer in Compromise actually reduces the total amount you owe. If approved, you can settle your entire tax debt for significantly less than the full balance—sometimes 90% less than what you originally owed.The IRS is much more selective about Offers in Compromise because they're essentially forgiving debt. You'll need to prove you can't pay the full amount and that your offer represents the most they can reasonably expect to collect from you. This is where professional representation becomes crucial for getting your offer accepted.

Question 3

How long does the Fresh Start Program process take?

Accepted Answer

The timeline depends on which option you're pursuing and how complex your case is. Simple installment agreements can often be set up within 30-60 days once we have all your financial documentation.Offers in Compromise take longer—typically 6-12 months from application to final decision. The IRS has up to two years to make a determination, though most cases resolve much faster with professional representation.The good news is that collection activities usually stop once we submit your application. This means no more threatening letters, no new liens or levies, and no additional penalties in most cases. You get relief from IRS pressure while we work on your permanent solution.

Question 4

Will the Fresh Start Program stop IRS collection actions immediately?

Accepted Answer

In most cases, yes. Once we submit your Fresh Start application, the IRS typically suspends collection activities like wage garnishments, bank levies, and asset seizures. This gives you breathing room while we negotiate your resolution.However, the IRS may still file tax liens during this period, and they'll continue adding interest to your debt. That's why it's crucial to act quickly rather than waiting for collection actions to escalate.If you're already facing active collection—like a pending levy or garnishment—we can often get emergency relief within days of taking your case. The key is getting professional representation before the IRS takes action, not after your bank account has been frozen or your wages garnished.

Question 5

What happens if my Fresh Start application gets rejected?

Accepted Answer

Rejection doesn't mean you're out of options. Most rejections happen because of incomplete documentation, calculation errors, or not presenting your case in the strongest possible light. With professional representation, we can address these issues and resubmit.We can also appeal the decision or explore alternative solutions. Sometimes a rejected Offer in Compromise can be restructured as a manageable installment agreement. Other times, we can pursue penalty abatement or Currently Not Collectible status instead.The worst thing you can do is nothing. Even if your first attempt at Fresh Start relief doesn't succeed, there are always other paths forward. The IRS wants to collect what you owe, and they're usually willing to work with taxpayers who are making good faith efforts to resolve their debt.

Question 6

Do I really need professional help, or can I handle this myself?

Accepted Answer

You can technically apply for Fresh Start programs yourself, but the success rates are dramatically different. The IRS accepts about 40% of professionally prepared Offers in Compromise but only about 15% of those filed by taxpayers without representation.The application process is complex, with strict documentation requirements and specific financial formulas the IRS uses to evaluate your case. One mistake or missing document can result in automatic rejection and months of delays.More importantly, you're negotiating with trained IRS professionals who handle these cases every day. Would you go to court without a lawyer? The same principle applies here. Professional representation levels the playing field and gives you the best chance of getting the maximum relief available under the law.

IRS Fresh Start Program Susquehanna Depot, PA