Fresh Start Program Compliance Monitoring: What Deckertown Taxpayers Must Do to Maintain Their Payment Agreements

Fresh Start Program Compliance: Your Roadmap to Maintaining IRS Payment Agreements and Avoiding Default

Securing an IRS Fresh Start Program installment agreement is just the beginning of your tax resolution journey. Once an agreement between the IRS and the taxpayer is established, the taxpayer must stay in compliance, and to remain in Fresh Start installment agreement, taxpayers must continue to be tax compliant, i.e. file and pay any future tax due on time. If you fail to remain tax compliant by filing a late return or creating a new balance due, it can default your agreement and you will have to ask to reinstate the agreement. For taxpayers in Deckertown and throughout the region, understanding these compliance requirements isn’t just important—it’s essential for protecting your financial future.

Critical Compliance Requirements Every Deckertown Taxpayer Must Follow

The taxpayer must have all of their tax returns filed and their current year tax debts are paid. This fundamental requirement extends beyond your initial application. As with regular installment agreements, Fresh Start payment plans require a taxpayer to be in current compliance with filing, tax withholding, and/or estimated tax payments.

The compliance monitoring process involves several key areas:

  • Timely Filing: All future tax returns must be filed by their due dates, including extensions
  • Current Tax Payments: New tax liabilities must be paid in full when due
  • Estimated Tax Payments: Self-employed taxpayers and those with significant non-wage income must make quarterly payments
  • Payroll Tax Compliance: Businesses must stay current with employment tax deposits and filings

What Happens When You Default on Your Agreement

Missing payments could disqualify you from the benefits of the program and lead the IRS to resume collection actions, such as liens or levies. Consistent compliance is key to maintaining relief under Fresh Start. Failure to make payments or stay current with other tax obligations can lead to the termination of the agreement. If default occurs, the IRS may resume aggressive collection actions, including wage garnishments or bank levies.

Default doesn’t just mean losing your payment plan—it can trigger immediate collection enforcement that’s often more aggressive than what you faced originally. If you default, the IRS will send CP523, but you can minimize this risk by talking with a tax attorney to ensure a payment plan is the best option for your finances.

Monitoring Your Agreement Status

Installment agreements are subject to periodic review. The IRS may request updated financial information to reassess your ability to pay, ensuring the agreement remains fair and sustainable. Once submitted, monitor your application status and continue to stay compliant with future tax filings and payments. Falling behind may disqualify you from program benefits.

For Deckertown taxpayers, this means maintaining detailed records of:

  • All payment confirmations and bank records
  • Filed tax returns and proof of timely filing
  • Estimated tax payment receipts
  • Any correspondence from the IRS

The Benefits of Staying Compliant

By setting up the installment agreement, you will be in good standing with the IRS. This means the IRS will not take any additional collection action such as Federal Tax Liens, Bank Levies, Social Security Levies, Wage Garnishments, or Seizures. Additionally, the program will also prevent tax lien filings or help remove tax liens already filed once the balance is under $25,000 and 3 direct debit installment agreement payments have been made.

The fresh start program deckertown taxpayers rely on provides these ongoing protections, but only when compliance is maintained consistently.

Professional Support for Long-Term Success

All County Tax Resolution understands the unique challenges facing taxpayers in Wayne County, Lackawanna County, Monroe County, Pike County, and Susquehanna County. All County Tax Resolution started because too many hardworking people in Wayne County, Lackawanna County, Monroe County, Pike County, and Susquehanna County were getting crushed by tax problems they never saw coming. Life happens. Businesses struggle. Medical bills pile up.

With offices in Pennsylvania and New York, their firm focuses on individual needs, and always treats clients like they matter, offering a full range of professional services while providing the individual attention that clients deserve. They typically stop wage garnishments within 24-72 hours of taking a case. Once they file power of attorney documents with the IRS, they must communicate through them instead of directly with you or your employer. They immediately request collection holds while negotiating a permanent resolution.

Taking Action to Protect Your Agreement

Don’t wait until you’re behind on payments or facing compliance issues. The key is acting fast – every day you wait means another paycheck gets reduced. Whether you need help setting up monitoring systems, addressing compliance concerns, or reinstating a defaulted agreement, professional guidance can make the difference between success and failure.

Call for a consultation where they’ll review your situation and explain your real options. No pressure, just honest answers from experienced professionals who know how to get results. The Fresh Start Program offers genuine relief for qualifying taxpayers, but maintaining that relief requires ongoing attention to compliance requirements that many find challenging to navigate alone.

Your Fresh Start Program agreement represents a fresh beginning—protect it with the diligence and professional support it deserves.