IRS Hardship Plan: Need IRS Financial Help? Stop IRS Collections Easily with the IRS Payment Options
IRS Financial Help: Don't let the IRS back you into a corner when you need IRS Financial Help. If there is no feasible way to pay your IRS Tax Debt, you can declare Financial Hardship with an IRS Hardship Plan to stop their fierce collections efforts. Although a IRS Hardship Plan is usually a temporary reprieve, it is still a valuable tool for taxpayers in desperate situations to Stop IRS Collections until they can consider other IRS Payment Options.
IRS Hardship Plan: Currently Not Collectible (CNC)
The IRS cannot force you to pay if doing so would force you to go without necessary living expenses. If you cannot pay the full balance or pay the IRS through an Installment Agreement without sacrificing basic needs, the IRS is required to report the account as "Currently Not Collectible" (CNC). Basic Needs Include:
- Rent/Mortgage Payments
- Food Expenses
- Utilities
- Gas/Transportation
- Medical Bills/Expenses
- Basic Clothing
Who Qualifies for Currently Not Collectible Status (CNC)?
According to a Report issued by the IRS on January 6, 2009, IRS employees will have greater authority to suspend collection actions in certain hardship cases where taxpayers are unable to pay. This includes:
- Taxpayers that have recently become unemployed
- Taxpayers that rely on Social Security or Welfare Income
- Taxpayers facing devastating illness or significant medical bills
Applying for Currently Not Collectible (CNC) Status
The IRS needs ample proof that you are unable to pay your Tax Debt before they will change your account status to Currently Not Collectible. It's tough to Stop IRS Collections and get Financial Help or an IRS Hardship Plan once the Tax Machine has already started running. Here's what the IRS will request to Stop IRS Collections with a IRS Hardship Plan:
- Completion of Form 433F, Collection Information Statement
- Additional documentation, such as receipts, past due bills, and bank statements
- Up-to-date Tax Filings
All contact from the IRS will cease while they determine if you qualify for Currently Not Collectible Status.
Temporary Reprieve
Currently Not Collectible status is not a permanent solution for solving your Tax Debt. Your case will be reactivated if there are any indications that your financial situation has improved. For example, the IRS collected over $400 million from cases in Currently Not Collectible Status in 2006 alone.
Case Denied- Consider Other IRS Payment Options
Despite the IRS's recently claims to ease the burden on the Taxpayer, collection efforts have increased. This means it will be harder to be approved for Currently Not Collectible status or any other IRS Hardship Plan unless you display exceptional need. Consider working with a qualified professional to increase your chances of getting your case approved for an IRS Hardship Plan. IRS Financial Help isn't easy to apply for, but you should still apply for an IRS Hardship Plan if you're desperate to Stop IRS Collections. If you don't qualify for an IRS Hardship Plan, consider other IRS Payment Options/
