The IRS will stop collection action if you can show economic hardship.\u00a0 That doesn\u2019t mean that the tax or the interest and penalties on the tax go away.\u00a0 You still owe the IRS, they are just not requiring you to make any payment towards the debt owed.\u00a0 Currently not collectible is referred to as status 53 at the IRS.<\/p>\n
To qualify for IRS hardship status Tempe Arizona the IRS will collect financial information about your monthly income and expenses.\u00a0 If your income and monthly expenses are close to being equal the IRS will consider you currently not collectible.\u00a0 However, the IRS has certain amounts that they consider reasonable for expenses.\u00a0 For example, the IRS feels that you car payment should be $588 per month or less.\u00a0 If your car payment is $800, the IRS will not allow you to be put on a hardship status.\u00a0 To be fair, the IRS can\u2019t 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.<\/p>\n
Qualifying for IRS hardship status Tempe Arizona is rather common.\u00a0 If the statute of limitations is close to running out, being put on status 53 is an excellent settlement strategy.\u00a0 The statute of limitation runs for 10 years from the time the taxes were assessed.\u00a0 We have had many clients that have stayed on currently not collectible status<\/a> for the full ten years.\u00a0 To stay on this status one must file and full pay their current taxes every year.<\/p>\n Scott Allen E. A.<\/p>\n Tax Debt Advisors, Inc<\/p>\n