Question 1

How do I know if I qualify for the IRS Fresh Start Program?

Accepted Answer

You likely qualify if you owe $50,000 or less in back taxes and can prove financial hardship or inability to pay the full amount. The IRS looks at your income, expenses, assets, and overall financial situation.

Most people don't realize they qualify because the IRS doesn't advertise these programs. They want you to pay in full. We review your specific situation during our free consultation and tell you exactly which options you qualify for. There's no guessing or false hope—just honest assessment of your case.

Question 2

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

Accepted Answer

Debt reduction varies by program and individual circumstances. Offers in Compromise can eliminate 90% or more of your debt if you qualify. Penalty abatement typically removes 25-40% of your total balance since penalties and interest often make up a large portion of tax debt.

The key is combining programs strategically. We might eliminate penalties through abatement, then negotiate a low monthly payment through an installment agreement. Some clients with severe financial hardship qualify for Currently Not Collectible status, which stops all payments until their situation improves. Every case is different, which is why professional evaluation is crucial.

Question 3

What happens to my credit score and tax liens?

Accepted Answer

Federal tax liens damage your credit score and make it nearly impossible to get loans or mortgages. The Fresh Start Program includes lien withdrawal provisions that can remove these liens from your credit report once you meet specific requirements.

For installment agreements, the IRS typically won't file new liens if you owe less than $25,000 and stay current on payments. If you already have liens, we can request withdrawal once your balance drops below $25,000 or you complete certain payment requirements. This process usually takes 30-60 days after approval and can improve your credit score significantly.

Question 4

How long does the Fresh Start Program application process take?

Accepted Answer

Most Fresh Start Program applications take 3-6 months from start to finish. Simple installment agreements for smaller balances can be approved in 30-45 days. Complex Offers in Compromise typically take 6-12 months because the IRS thoroughly reviews your financial information.

The timeline depends on how quickly you provide required documentation and which program you're applying for. We handle all paperwork and IRS communication, so you don't need to take time off work for meetings or phone calls. Most clients see immediate relief from collection activities once we submit your application, even before final approval.

Question 5

Can the IRS still garnish my wages while applying for Fresh Start?

Accepted Answer

Once we submit your Fresh Start Program application, the IRS typically stops most collection activities including wage garnishments. This is called "collection hold" status and provides immediate relief while your case is being reviewed.

If you already have active garnishments, we can often get them released within days of submitting your application. The IRS wants to see if you'll qualify for a payment plan before continuing aggressive collection. However, you must stay current on any new tax obligations that arise during the application process. Missing current year payments can restart collection activities.

Question 6

What if I haven't filed tax returns for several years?

Accepted Answer

You must file all required tax returns before the IRS will consider any Fresh Start Program application. This is non-negotiable—they won't negotiate with taxpayers who aren't current with filings.

We help prepare and file all missing returns as part of our service. Sometimes unfiled returns actually work in your favor because withholdings or estimated payments create refunds that reduce your overall debt. We calculate the most advantageous filing strategy before submitting anything to the IRS. Once all returns are filed and processed, we can move forward with your Fresh Start Program application. Book online today or call 570-630-0201 to get started.

IRS Fresh Start Program Tunkhannock, PA