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 combined tax debt, penalties, and interest, are current on all required tax filings, and can demonstrate financial hardship or inability to pay the full amount. Self-employed individuals may qualify with a 25% or more drop in income, which is common in White Mills' construction and service sectors. The qualification process involves a thorough review of your financial situation, including income, expenses, assets, and payment history with the IRS. We evaluate your case during our free consultation and determine which Fresh Start options give you the best outcome based on your specific circumstances. Don't assume you don't qualify based on your income or debt amount. The IRS has multiple programs under the Fresh Start initiative, and we've successfully helped clients with various financial situations find relief. Even if you think you make too much money or owe too little, there might be options you haven't considered.

Question 2

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

Accepted Answer

An Offer in Compromise allows you to settle your tax debt for less than the full amount you owe – sometimes as little as 10% of the original debt. This is actual debt forgiveness, meaning the remaining balance is wiped out completely once you fulfill the agreement terms. It's like negotiating a settlement on any other debt. A payment plan (installment agreement) spreads your full tax debt over time with monthly payments, but you still owe the entire amount plus interest. However, streamlined installment agreements under Fresh Start can extend payments up to 72 months and may not require detailed financial disclosure for debts under $50,000. The best option depends on your specific financial situation. If you truly cannot pay the full amount without causing economic hardship, an Offer in Compromise might be ideal. If you can afford monthly payments but need time, an installment agreement could work better. We analyze both options during your consultation to recommend the strongest approach.

Question 3

How long does the Fresh Start Program process take?

Accepted Answer

The timeline varies depending on which program you're applying for and the complexity of your case. Installment agreements can often be approved within 30-60 days, while Offers in Compromise typically take 6-12 months for the IRS to review and approve. Currently Not Collectible status can be granted relatively quickly if you meet the financial hardship criteria. Penalty abatement requests usually take 2-4 months to process, depending on the circumstances and documentation required. The IRS has specific timeframes they must follow, but proper preparation on our end can speed up the process significantly. The key is starting the process immediately. Every day you wait, penalties and interest continue to accrue at rates that can double your debt over time. Once we establish representation, we stop the collection process while your case is being reviewed, giving you breathing room and peace of mind while we work toward resolution.

Question 4

Will the IRS accept my Offer in Compromise application?

Accepted Answer

The IRS accepts approximately 40% of properly submitted Offer in Compromise applications, but the key phrase is "properly submitted." Most rejections happen because applications are incomplete, calculations are wrong, or applicants don't actually qualify for the program in the first place. We significantly improve your approval odds by ensuring your application is complete, accurate, and presents your financial situation in the most favorable light possible. We know exactly what documentation the IRS requires and how to structure your offer for maximum acceptance potential, because we've done this hundreds of times. The IRS uses a specific formula to calculate your reasonable collection potential based on your income, expenses, and assets. If your offer meets or exceeds this amount and you meet all qualification requirements, acceptance is likely. We handle all the complex calculations and paperwork to get it right the first time, avoiding costly delays and rejections.

Question 5

What happens if I can't make my installment agreement payments?

Accepted Answer

If your financial situation changes and you can't make your agreed-upon payments, contact us immediately. The IRS allows modifications to installment agreements when circumstances change, but you must request the modification before you default on payments. We can help you request a payment reduction, temporary suspension, or restructuring of your agreement. The IRS is often willing to work with taxpayers who communicate proactively rather than simply stopping payments and hoping the problem goes away. Missing payments without communication will cause your agreement to default, potentially restarting collection actions like wage garnishments and bank levies. However, defaulted agreements can often be reinstated if you act quickly and demonstrate the ability to resume payments. The key is staying in communication and addressing problems before they become crises.

Question 6

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

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 most powerful collection agency in the world, and they have teams of trained professionals working against you every single day. DIY attempts often result in rejections, missed deadlines, and worse outcomes than professional representation can achieve. We know the IRS procedures, speak their language, and understand how to present your case for maximum benefit. More importantly, we know what they're looking for and what red flags to avoid. The cost of professional representation is typically far less than the money we save you through successful negotiations. More importantly, we handle all the stress, paperwork, and IRS communications so you can focus on your family and work while we resolve your tax problems. End the sleepless nights. Call 570-630-0201 or book online today. We will stand between you and the IRS, negotiate the lowest legal settlement, and give you the fresh start you deserve.

IRS Fresh Start Program White Mills, PA