page contents
  • dave rosa

IRS Hardship - Tax Debt Help From IRS Tax Advocates

Updated: a day ago


Coast to Coast - IRS Help

IRS Hardship - IRS Tax Relief

Federal Tax Relief Hardship Program

Dealing with the IRS regarding anything much less tax debt can be a hard and stressful situation for taxpayers.

Fortunately, the IRS hardship program is here to help. The federal tax relief hardship program is for taxpayers who are unable to pay their back taxes.

Taxpayers experiencing financial hardship can apply for the IRS' Currently Not Collectable status. You can qualify for this IRS hardship program if you can’t pay taxes after paying for basic living expenses. You do not have to be destitute to qualify. While you’re in the IRS hardship program, the IRS cannot take enforcement measures out on you. In other words, the IRS cannot:

a. Seize your property.

b. Take your paycheck.

c. Confiscate your bank account.

Being in the IRS hardship program doesn’t mean that your tax debt is forgiven. The IRS Hardship Program suspends collection of the tax debt. A federal tax lien will be filed. The time that the IRS has to collect will continue to run out which is to your advantage.

What is the IRS Hardship Program?

The federal tax relief hardship program is designed for individuals who no longer in a position to pay their tax debt. Another term used to describe the IRS hardship program is Currently not Collectible. When placed in Currently not Collectible the government cease collection activities on your account. The IRS will not seize your property or confiscate your paycheck or bank account.

You will still owe the tax debt. The IRS will sent you notices to remind you every year of how much you owe. During the period you are in the hardship program, the IRS will continue to charge you penalties and interest. Therefore, while you’re in the IRS hardship program, it’s a good idea to come up with a tax relief plan.

How Long Does the IRS Hardship Program last?

IT's possible that you could be in an IRS hardship program for up to 10 years. Typically, the IRS has 10 years to collect back taxes. The 10 year collection period starts on the date of assessment and is known as the Statute of Limitations.

After the 10 years is up, the IRS is supposed to remove the back taxes. For instance, let’s say you filed taxes in 2010 and you owe back taxes. In that case, the IRS could collect the back taxes until 2021. If you filed for Currently Not Collectible status in 2010, the IRS will leave you alone. Additionally, you could stay in the IRS hardship program until 2021. After 2021, the IRS will remove the taxes you owed from 2010.

Understand, the IRS can pull your hardship at any time. The closure to the end of the Statute of Limitations, the IRS microscope on you will intensify.

What happens if I owe new back taxes?

Let’s say you filed taxes in 2021 and you owe more. If that happens, the new taxes will not be automatically included in the IRS hardship status. The IRS treats each new tax year separately.

Therefore, your 2010 taxes will be treated completely differently from your 2021 taxes. In other words, the IRS can still pursue you for the new 2020 taxes, but not the 2010 taxes. The IRS most likely will pull your Currently not Collectible status out from under you.

Should you find yourself in a situation like this, it’s often recommended that you pay off the new taxes. If you are unable to pay your new tax debt, you can also place them in the IRS hardship program by providing the IRS with new financials. This can be difficult to do this if every year you owe taxes because the IRS will consider you to be habitual. The Fresh Start Program

If you come out of the hardship program there are tax relief options available. The IRS provides taxpayers the Fresh Start Program for taxpayers who want away to pay back taxes or settle tax debt.

In other words, the IRS Fresh Start program allows taxpayers to pay off the substantial tax debt in six years if an installment agreement is best you qualify for. Each month, you’ll make payments based on your current income. Your payment amount will also be based on the value of your liquid assets. At the end of six years, your tax debt should be paid off in full.

1. The IRS offers an extended installment agreement. This payment plan gives taxpayers up to six years to pay off the tax debt in affordable monthly payments.

2. The IRS offers a tax settlement of tax debt and that is an Offer in Compromise (OIC). A tax settlement is submitted through an Offer in Compromise. This settlement offer gives taxpayers the opportunity to settle their tax debt for much much less.

Avoid Tax Debt with the Fresh Start Program

The 2 main tax debt settlement components are being placed into Currently not Collectible (IRS Hardship) and a tax settlement by submitting an Offer in Compromise. If you have been declared to be CNC, why not settle your tax debt with an Offer in Compromise. If your tax debt is $10,000 of more, why not do a settlement?

To do anything with the IRS requires that you file the last 6 tax returns. That's the qualifier.

Get Tax Debt Help from Experienced Tax Lawyers

The IRS understands that their IRS Agents cannot collect every tax debt. The IRS wants to always do 2 things: collect money (the amount isn't always the important item) and close files. That’s why they created the IRS Hardship Program.

The Tax Lawyers at Flat Fee Tax relief have a 96% Offer in Compromise success rate. The national average is only 42%.

If you’re looking to get out of tax debt for good, call us immediately. When dealing with tax debt, the smartest thing to do is to act quickly. Call us today for your free no-obligation consultation. Discover how we can get you on the road to financial freedom. Settle with IRS.



CALL 1-866-747-7435



Recent Posts

See All