IRS Tax Debt: IRS Hardship Status Explained, Get the Relief You Need Today!
IRS Tax Relief,- Flat Broke: You'd pay your IRS Tax Debt, if only you could. If you're in this boat, you're not alone. Many people are in a situation where they can't pay their IRS Tax Debt. Maybe they've been out of work, maybe a loved one has been sick, or maybe there has been some other emergency. There's a little known secret for taxpayers who owe IRS Tax Debt and need IRS Tax Relief in this situation. You can suspend the IRS's collections process. Educate yourself, see if you qualify.
IRS Hardship Status: IRS Hardship status is for people who cannot pay on their IRS debt without sacrificing their basic needs. The IRS will compare your monthly gross income versus what they consider your "allowable expenses" to determine if you qualify for this program. If you qualify for IRS Hardship Status, collection efforts may be extended for up to 1 year.
Basic Needs? Basic needs or "allowable expenses" includes food, housing, clothing, transportation, medical expenses, and insurance. The IRS will not count any luxury expenses as basic needs. So don't try to include the price for weekly lawn maintenance (The IRS wants you to mow your own lawn), or even the price of private school for your kids. The amount of money you can spend on your basic needs are national standards, which the IRS updates every year. Here as the national standards as of March 1, 2008:
IRS Allowable Expenses: Applying to One Person:
IRS Allowable Expenses: Food: $227
IRS Allowable Expenses: Housekeeping Supplies: $28
IRS Allowable Expenses: Apparel & services: $85
IRS Allowable Expenses: Personal care products & services: $30
IRS Allowable Expenses: Miscellaneous: $87
As you can see, the IRS is not very generous with what they consider "Allowable Expenses."
Qualify for IRS Hardship Status? If paying the IRS will make you go without basic needs, you may qualify for Hardship Status. How do you apply for it? First, you fill out Form 433A. The IRS will use this form to figure out your financial situation and see if you apply.
IRS Hardship Status-Don't Party Yet: It's not over yet. The IRS Hardship Plan does not suspend collections forever. After the grace period given to you has expired, collections efforts will resume full force. Plus, the IRS will check up on your every couple of months to see if you still qualify for the hardship plan. If your income has changed, the IRS might expect you to pay on your IRS debt.
IRS Tax Relief- Criminal Charges: Do not lie on Form 433A in any way to achieve IRS Hardship status- this is not how you achieve IRS Tax Relief! When the IRS finds out, you'll face severe penalties and/or criminal charges. If you are unsure about anything you put on your form, contact a professional that will help you. Don't go to jail just to skip out on your IRS Tax Debt for a few months!
