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Hardship Status

If you owe the IRS and can't pay, call Fresh Start Tax at to see if you qualify for Hardship Status.

The Internal Revenue Service has a provision in the Internal Revenue Manuel Section 5.16.1.2 that allows for individuals or companies that are going through a current hardship to suspend their cases and put them in a currently noncollectable file. Many people are completely unaware that IRS has a procedure called "hardship status". About 50% of taxpayers that have IRS tax problems do not have the ability to pay the tax because of their current financial circumstances. If you are going through a hardship in your life, call Fresh Start Tax today and we can help put your IRS problem behind you.

Conditions for a Hardship Status

IRS will place a case in Hardship Status if the information found on the form 433A or 433F Collection Information Statement finds that the taxpayer is unable to pay basic living expenses. In addition, the taxpayer will have little or no equity in their assets. With more and more homeowners in foreclosure, people losing their jobs and all the other economic problems, IRS is now taking into consideration these factors and placing more cases in a noncollectable status. Also, if the only source of income is social security and you have excessive medical bills, the government will be quick to act in granting a hardship.

 

Do I Qualify For Hardship Status?

 

How to apply for Hardship Status

The first thing you should do is call Fresh Start Tax to make sure you qualify. Be careful if you chose to contact the IRS directly as all information you provide will be used to attempt to collect the tax due. You could expose yourself to more problems than you bargained for. A professional at Fresh Start Tax can go over the required forms necessary to make sure you receive a Hardship Status if you qualify. These forms include the 433A or 433F Information Collection Statements along with full supporting documentation. Also, all your tax returns must be filed. The IRS will not review your case for Hardship Status until all returns are filed.

Why use Fresh Start Tax

Fresh Start Tax is composed of Attorney's, CPA's, Enrolled Agents and former IRS agents who know how to navigate through the system. We will complete a thorough review of your case and be able to tell you how the IRS will deal with your case. Each case has unique features and there is no general rule on how to resolve your case. If successful, IRS will probably suspend your case for a period of 3 years, but penalties and interest will continue to accrue.

This Hardship Status is also known as the Noncollectable Status by the Internal Revenue Service. When your case is placed in this status IRS will not send out a Federal Tax Levy on your bank account or a tax levy on your wages. However, the IRS will still file a Federal Tax Lien on the back taxes. IRS does not want the public to be aware of the program and many times insist on a small payment so the agent looks like they are doing their job. However, if you qualify, the IRS has to place your case in Noncollectable Status.

Questions on Hardship Status - Feel free to email us a question!

If IRS filed a substitute tax return for you, we can help!

National Standards used by Internal Revenue Service on ALL cases