Question 1

How much does the IRS Fresh Start Program cost to apply for?

Accepted Answer

The IRS Fresh Start Program itself is free—it's a set of IRS policies, not a paid service. However, most people hire tax professionals to handle the complex paperwork and negotiations because mistakes can be costly and time-consuming to fix.

All County Tax Resolution offers free initial consultations to evaluate your case and explain your options. Professional representation fees vary based on your specific situation and which programs you qualify for. We accept Mastercard and Visa with a 4% convenience fee, and many clients find the professional fees pay for themselves through better negotiated settlements.

The real cost is attempting this alone and getting it wrong. The IRS has strict deadlines, specific financial disclosure requirements, and complex qualification criteria that change regularly. One missed deadline or incomplete form can disqualify you from programs that could save thousands.

Question 2

What's the difference between Offer in Compromise and payment plans?

Accepted Answer

An Offer in Compromise actually reduces the total amount you owe the IRS—sometimes by 90% or more. You make a lump sum payment or short-term payments for less than your full debt, and the IRS forgives the rest. However, qualification requirements are strict, and the IRS scrutinizes your finances thoroughly.

Payment plans (Installment Agreements) spread your full tax debt over time without reducing the amount owed. You pay the complete balance plus interest, but in manageable monthly payments. Streamlined plans for debts under $50,000 have minimal paperwork and faster approval.

Most Turn Villa residents benefit more from payment plans because they're easier to qualify for and get approved faster. Offer in Compromise works best for people facing genuine financial hardship with little income or assets. Your tax professional can run the numbers and recommend the option that saves you the most money long-term.

Question 3

How long does it take to get approved for Fresh Start relief?

Accepted Answer

Streamlined Installment Agreements typically get approved within 30-45 days if your paperwork is complete and accurate. These are the fastest option for taxpayers owing under $50,000 with steady income.

Offer in Compromise takes 6-12 months because the IRS conducts thorough financial investigations. They verify your income, expenses, assets, and ability to pay. Incomplete applications get rejected and restart the entire process, which is why professional preparation matters.

Penalty Abatement and Currently-Not-Collectible status usually resolve within 60-90 days. Lien Withdrawal happens quickly once you meet the requirements—often within 30 days of entering an approved payment plan or paying your balance below $25,000. The key is submitting complete, accurate paperwork the first time and having someone who knows how to navigate IRS procedures efficiently.

Question 4

Can the IRS still garnish wages while I'm applying for Fresh Start?

Accepted Answer

Yes, existing wage garnishments typically continue while your Fresh Start application is pending, unless you specifically request a Collection Due Process hearing or your case qualifies for immediate hardship consideration.

However, once you're approved for most Fresh Start programs, wage garnishments stop immediately. Installment Agreements halt all collection activities as long as you make payments on time. Offer in Compromise stops collections during the evaluation period and permanently if approved.

The fastest way to stop wage garnishments is getting into an approved payment plan quickly. We can often negotiate temporary collection holds while preparing your paperwork, especially if you're facing immediate financial hardship. Time matters because garnishments continue taking money from every paycheck until you get formal IRS approval for relief.

Question 5

What happens if I don't qualify for the Fresh Start Program?

Accepted Answer

Even if you don't qualify for specific Fresh Start programs, other tax resolution options exist. Partial payment installment agreements let you pay less than the full balance over time. Innocent spouse relief protects you from tax debt created by your spouse or ex-spouse.

Currently-Not-Collectible status temporarily stops collections if you're facing genuine financial hardship, even if you don't qualify for debt reduction programs. Bankruptcy can discharge certain tax debts under specific circumstances, though this should be a last resort.

The IRS also has hardship programs and payment plan modifications that aren't technically part of Fresh Start but provide real relief. An experienced tax professional can evaluate all available options, not just the popular programs everyone talks about. Sometimes the best solution combines multiple strategies or uses lesser-known IRS procedures that achieve better results than Fresh Start alone.

Question 6

Do I need to file all my back tax returns before applying?

Accepted Answer

Yes, the IRS requires all tax returns to be filed before approving most Fresh Start programs. This includes personal returns, business returns, and payroll tax returns if you're a business owner. Missing returns automatically disqualify you from Installment Agreements and Offer in Compromise.

Filing back returns often reveals you owe less than you think because of deductions, credits, or withholdings you forgot about. Sometimes clients discover they're actually owed refunds for certain years, which reduces their overall tax debt significantly.

We can prepare and file multiple years of returns quickly, ensuring they're done correctly to maximize your deductions and minimize additional penalties. We coordinate the return preparation with your Fresh Start application so everything moves forward simultaneously. Trying to handle unfiled returns and Fresh Start applications separately usually takes longer and costs more than having professionals manage both processes together.

IRS Fresh Start Program Turn Villa, PA