Question 1

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

Accepted Answer

The reduction depends on your specific financial situation, but the results can be dramatic. Through Offer in Compromise, eligible taxpayers can settle their debt for as little as 10-20% of what they owe. We've seen clients with $50,000 tax bills settle for $5,000 or less.

For Thompson residents facing financial hardship, the program considers your actual ability to pay—not just what the IRS wants. If you're living paycheck to paycheck or dealing with unemployment, the IRS may accept far less than the full amount.

Even if you don't qualify for a major reduction, we can often eliminate penalties and interest, set up affordable payment plans, or get your account marked Currently Not Collectible until your financial situation improves.

Question 2

Will the IRS really stop collection activities once I hire you?

Accepted Answer

Yes. The moment you hire us and we file the proper representation forms, the IRS must deal with us instead of you. Collection calls to your home and workplace stop immediately. Threatening letters get redirected to our office.

This protection is automatic and immediate. The IRS cannot ignore our representation or continue harassing you directly. If they try, we shut it down fast.

However, this doesn't mean your tax debt disappears overnight. The clock stops on aggressive collection while we negotiate, but you still owe the money until we reach a resolution. That's why it's crucial to act quickly before the IRS takes more serious action like wage garnishment or bank levies.

Question 3

How long does the Fresh Start Program process typically take?

Accepted Answer

Most cases resolve within 6-12 months, but complex situations can take longer. The timeline depends on several factors: how much you owe, which relief option you qualify for, and how quickly you provide required documentation.

Offer in Compromise cases typically take 8-12 months because the IRS thoroughly investigates your finances. Installment agreements can be approved much faster—sometimes within 30-60 days if your case is straightforward.

The key is starting the process quickly. Every month you wait, penalties and interest keep growing. Plus, the IRS becomes more aggressive over time. What starts as letters can escalate to wage garnishment, bank levies, or property seizure if you don't take action.

Question 4

Do I qualify for the Fresh Start Program if I'm self-employed?

Accepted Answer

Self-employed individuals often qualify for Fresh Start relief, but the requirements can be more complex. You need to be current on all tax filings and estimated payments for the current year. If you're behind on quarterly payments, we'll need to address that first.

Self-employed taxpayers in Thompson's construction and service industries face unique challenges. Irregular income, seasonal work, and business expenses can create tax problems even when you're trying to comply.

The good news is that self-employment income fluctuations often work in your favor for Offer in Compromise. If your business income has dropped significantly, the IRS may accept a much lower settlement based on your reduced earning capacity. We'll analyze your business financials to determine the best approach for your specific situation.

Question 5

What happens if I can't afford the settlement amount you negotiate?

Accepted Answer

If you truly can't afford any payment, you may qualify for Currently Not Collectible status. This isn't debt forgiveness, but it stops all collection activity until your financial situation improves. For Thompson families dealing with unemployment or medical emergencies, this can provide crucial breathing room.

We also structure settlements with affordable payment terms. Offer in Compromise can be paid over 24 months, and installment agreements can stretch up to 72 months. We work within your actual budget—not some theoretical number.

If your financial situation changes during the process, we can renegotiate. The IRS understands that life happens. Job loss, medical bills, or family emergencies can all be grounds for modifying your agreement.

Question 6

Should I try to handle this myself or hire a professional?

Accepted Answer

Would you go to court without a lawyer? Of course not. Then why would you go before the IRS without a trusted tax professional? The IRS is the world's most powerful collection agency, and they have teams of agents trained to collect every penny.

DIY tax resolution often backfires spectacularly. You might accept a payment plan you can't afford, miss critical deadlines, or say something that hurts your case. The IRS won't tell you about options you qualify for—they're not your advocate.

Professional representation levels the playing field. We know the IRS procedures, deadlines, and negotiation tactics. We speak their language and understand what they're really looking for in your financial documentation. Most importantly, we fight for your interests while the IRS fights for theirs.

End the sleepless nights. Call 570-630-0201 or book online today. All County Tax Resolution will stand between you and the IRS, negotiate the lowest legal settlement, and give you the fresh start you deserve.

IRS Fresh Start Program Thompson, PA