Question 1

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

Accepted Answer

You may qualify for the fresh start program 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 or inability to pay the full amount without economic strain. Self-employed individuals in Union Hill may qualify with a 25% or greater drop in income.

The key is proving that paying your full tax debt would create genuine financial hardship. This means showing the IRS that after covering basic living expenses—housing, food, transportation, medical care—you don't have enough left to pay what they're demanding. Pennsylvania residents often qualify because of the state's higher cost of living and property tax burden.

We evaluate your complete financial picture during your consultation to determine which specific IRS fresh start options you qualify for. Every situation is different, and what works for your neighbor might not be the best solution for your circumstances.

Question 2

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

Accepted Answer

An installment agreement lets you pay your full tax debt over time through monthly payments, typically up to 72 months for streamlined agreements. You're still paying everything you owe, but in manageable chunks instead of one lump sum. The IRS continues to charge interest, but you avoid more serious collection actions like wage garnishment or asset seizure.

An Offer in Compromise actually settles your tax debt for less than the full amount—sometimes dramatically less. If approved, you pay the agreed-upon settlement amount and the IRS forgives the rest. However, you must prove you'll never be able to pay the full amount through financial hardship, asset liquidation, or future income.

For Union Hill residents, installment agreements work well when you have steady income but need time to pay. Offers in Compromise are better when your debt is genuinely more than you could ever realistically pay, even over many years. We analyze your situation to recommend the tax relief option that saves you the most money.

Question 3

How long does the Fresh Start Program application process take?

Accepted Answer

The timeline varies depending on which fresh start tax program option you're pursuing and the complexity of your case. Streamlined installment agreements for amounts under $50,000 can often be approved within 30-60 days since they require less documentation and review. Standard installment agreements may take 60-90 days.

Offers in Compromise typically take longer—usually 6-12 months or more—because the IRS conducts a thorough review of your financial situation. They want to verify that you truly can't pay the full amount before accepting a settlement. However, once you submit your application, the IRS generally suspends collection activities while they review your case.

During this process, we handle all IRS communications and keep you informed of any developments. You don't have to worry about missed deadlines or procedural mistakes that could derail your case. We ensure everything moves as quickly as possible while meeting all IRS requirements.

Question 4

Will the Fresh Start Program stop IRS collection actions immediately?

Accepted Answer

Yes, in most cases, submitting a proper fresh start program application triggers an automatic stay of IRS collection activities. This means they must stop wage garnishments, bank levies, and other enforcement actions while your application is under review. However, the IRS may still file new tax liens during this period.

The key word is "proper" application. If your paperwork is incomplete or doesn't meet IRS requirements, they can reject it and resume collection activities immediately. This is why professional representation is so important—one mistake can cost you months of protection and thousands of dollars in continued penalties and interest.

We ensure your application is complete and properly submitted the first time. We know exactly what documentation the IRS requires and how to present your case for the best chance of approval. This professional handling often means the difference between getting tax debt relief and facing continued collection pressure.

Question 5

Can I apply for the Fresh Start Program if I haven't filed all my tax returns?

Accepted Answer

No, you must be current on all required tax filings before the IRS will consider any IRS fresh start program application. This means filing returns for every year you're required to file, even if you can't pay the taxes owed. Unfiled returns actually increase your total debt because the IRS assesses failure-to-file penalties on top of everything else.

The good news is that filing missing returns often reduces your total debt compared to what the IRS estimated you owed. When you don't file, the IRS creates substitute returns using information from employers and financial institutions, but they don't include deductions, credits, or other benefits that could lower your tax liability.

We can prepare and file all your missing returns as part of the tax relief services process. We ensure accuracy and maximize all available deductions to minimize your total debt before negotiating your relief options. Getting compliant with filing requirements is always the first step toward resolving your tax problems.

Question 6

What happens if the IRS rejects my Fresh Start Program application?

Accepted Answer

If the IRS rejects your initial application, you typically have appeal rights or can resubmit with additional information. Rejections often happen because of incomplete documentation, calculation errors, or failure to demonstrate genuine financial hardship. The specific reason for rejection determines your next options.

For installment agreements, rejection might mean you need to accept higher monthly payments or provide additional financial documentation. For Offers in Compromise, rejection could mean increasing your settlement offer or providing more detailed proof of financial hardship. Sometimes it's just a matter of correcting paperwork errors.

We have extensive experience handling rejected applications and appeals. We know the common reasons for rejection and how to address them effectively. If your initial application is rejected, we analyze the IRS response and develop a strategy to overcome the objections. Many cases that are initially rejected ultimately succeed with proper professional handling and tax debt relief expertise.

IRS Fresh Start Program Union Hill, PA