How to Get Into IRS Hardship Status

There’s a lot of concern, even fear, amongst people who owe the IRS money and aren’t sure how it’s going to be paid back. There’s hope. You may qualify for IRS Hardship status. Just keep in mind that it’s not the “be” all “end” all solution that most people might think. It’s when the IRS agrees to hold back from collecting your tax debt for a specific period.

That period is usually for a year or two. In determining your status, the IRS will go through your records to find out if you, truly, cannot pay. So, at that point, there may not be any other apparent attempts to collect your taxes. It depends on what the IRS will allow.

You’ll need one of two forms to file: form 433A, or form 433B if you’re in business. These forms help to determine if you qualify for hardship status. You’ll also need to show documented proof of your income and expenses status. Obviously, it’s difficult for the average person to navigate all the nuances in dealing with this sort of thing. That’s why it’s critical for you to get help and the representation you need from a qualified tax attorney. Your tax attorney knows the law and can help you try and negotiate the best deal possible.