IRS Hardship
Sometimes taxpayers come across unforeseen financial events and it puts them in a situation where they are simply not able to pay the IRS the taxes that are owed. The IRS understands that this happens and has the power to declare an individual uncollectible if they can prove to the IRS that the collection of the tax would cause financial hardship.
Processing A Hardship Case
Once the IRS approves, then this will temporarily stop collections. The IRS will follow up several months later to see the financial situation has improved enough in order to start collections again. This status won’t solve your tax problem, but will buy you more time to deal with it.
To determine a financial hardship the IRS will request a complete financial statement from the taxpayer. Using predetermined IRS standards based on number people claimed on the most recent income tax return, county of residence and other necessary expenses, the IRS will determine if you are eligible for currently non-collectible status.
Remember, currently non-collectible status is a temporary status. The IRS maintains the right to reevaluate your income and expenses to determine if you are now capable of repaying your tax debts. While you are in non-collectible status the IRS will intercept and income tax refund you are due and apply it to your outstanding balance.
Oftentimes, this is an excellent outcome for someone on a fixed income or possibly retired.
Assistance For Hardship Cases
Our team of licensed tax professionals will gather the appropriate tax records if you qualify for an IRS Hardship case. This will provide you temporary relief from tax obligations.
