IRS Hardship Status Tempe Arizona

The IRS will stop collection action if you can show economic hardship. That doesn’t mean that the tax or the interest and penalties on the tax go away. You still owe the IRS, they are just not requiring you to make any payment towards the debt owed. Currently not collectible is referred to as status 53 at the IRS.

To qualify for IRS hardship status Tempe Arizona the IRS will collect financial information about your monthly income and expenses. If your income and monthly expenses are close to being equal the IRS will consider you currently not collectible. However, the IRS has certain amounts that they consider reasonable for expenses. For example, the IRS feels that you car payment should be $588 per month or less. If your car payment is $800, the IRS will not allow you to be put on a hardship status. To be fair, the IRS can’t allow someone with a nice car be on a hardship status while the taxpayer with a car within their acceptable limit be required to make monthly payments on their IRS debt.

Qualifying for IRS hardship status Tempe Arizona is rather common. If the statute of limitations is close to running out, being put on status 53 is an excellent settlement strategy. The statute of limitation runs for 10 years from the time the taxes were assessed. We have had many clients that have stayed on currently not collectible status for the full ten years. To stay on this status one must file and full pay their current taxes every year.

Scott Allen E. A.

Tax Debt Advisors, Inc