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 taxes, penalties, and interest, are current on all required tax filings, and can demonstrate financial hardship or inability to pay the debt in full. Self-employed individuals may qualify if they show a 25% or more drop in income.

The key is having all your tax returns filed first. The IRS will not grant relief to individuals who have unfiled tax returns. We help you get compliant before pursuing any relief options.

During your consultation, we review your specific situation to determine which Fresh Start options make sense for your circumstances. Every case is different, and eligibility depends on multiple factors including your income, expenses, and asset equity.

Question 2

Can the IRS really forgive my tax debt completely?

Accepted Answer

Through Offer in Compromise, the IRS may settle for 10% to 20% of your debt if you can show that you truly cannot afford to pay the full amount. This is legitimate debt forgiveness, not just payment plans.

You must demonstrate doubt as to collectibility (you cannot pay the full amount), doubt as to liability (legitimate doubt that you owe the tax), or effective tax administration (exceptional circumstances where collection would create economic hardship).

However, if the IRS determines you can pay more over time, they probably will not accept your offer. That's why professional representation matters - we know how to present your financial situation effectively to maximize your chances of acceptance.

Question 3

What happens if I ignore my tax debt?

Accepted Answer

If you ignore your tax balances, the IRS will begin escalating your case through the collections process and may eventually file a lien against your property, garnish your wages, or potentially seize your assets. The IRS can take aggressive collection actions if debt remains unresolved.

Not filing on time causes late filing and late payment penalties to be added to your balance along with interest. The longer it takes to resolve your tax debt, the more serious the repercussions become, so you need to deal with the issue quickly.

Having unfiled returns is ultimately a criminal offense, and if you do not file, you can be prosecuted and punished, possibly with jail time. The IRS has extraordinary collection powers, but they also prefer to work with taxpayers who take proactive steps to resolve their obligations.

Question 4

How long does the Fresh Start Program application process take?

Accepted Answer

The IRS review process can take several months, especially for Offers in Compromise. However, if you're approved for an installment agreement or hardship status, most collection actions pause or stop once your application is submitted.

For tax lien withdrawal, you generally need to make three successful monthly payments before the agency will remove the tax lien. The timeline depends on which relief option you pursue and how quickly you can provide required documentation.

We handle all the paperwork and IRS communication to speed up the process. This includes gathering financial documents, completing required IRS forms like Form 656 and Form 433-A for individuals, and submitting everything properly. Professional representation typically results in faster processing and better outcomes.

Question 5

Will using a tax relief company hurt my credit score?

Accepted Answer

Enrolling in a tax relief program does not hurt your credit score. In fact, resolving your tax debt can improve your credit situation by preventing or removing tax liens that damage your credit report.

The Fresh Start Program increased the tax debt threshold for filing a lien from $5,000 to $10,000, meaning fewer taxpayers face liens on their credit reports. This increase in threshold reduces the burden on taxpayers and minimizes the impact of liens on credit reports, employment, and housing opportunities.

Tax debt forgiveness can improve your credit score in the long run by resolving the underlying tax problems that lead to liens and levies. The sooner you address tax debt, the less likely it is to appear on your credit report or affect your financial standing.

Question 6

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

Accepted Answer

The IRS processes are so complicated that sometimes IRS agents don't know all the rules, which is why you're entitled to hire a representative to walk you through the entire tax resolution process. You're not hiring someone who occasionally dabbles in this area - you're hiring someone specially trained and up to date on all the latest tax debt relief strategies.

While many people try to resolve tax issues on their own, the process can be confusing, time-consuming and emotionally draining, so getting the right help can make all the difference. We can help you get back into IRS compliance and potentially settle your tax debt for less than you owe, understanding which tax resolution proposals the IRS is most likely to accept.

Would you go to court without a lawyer? Of course not! Then why would you go before the IRS without a trusted tax professional? IRS debt forgiveness programs are difficult to set up on your own, and taxpayers can get bogged down in complicated concepts and end up being rejected for programs that we would have gained approval for.

IRS Fresh Start Program Torrey, PA