Struggling to Keep Your Head Above Water?
If you’re drowning in tax debt, help is available. The IRS Hardship Program provides real relief for those who are experiencing financial difficulties.
IRS Hardship Program
The IRS Hardship Program, otherwise known as Currently Not Collectible (CNC) status, helps taxpayers who are struggling to make ends meet. If eligible, certain IRS collections actions will cease (wage garnishments and levies), and you won’t be required to make any payments toward your tax debt. Interest and penalties, however, will continue to accrue. The IRS may also file a tax lien on your property and may seize future tax refunds to help pay down your debt.
It’s also important to note that this is a temporary form of tax relief. The IRS will periodically review your financial situation and assess your continued eligibility for the program.
Applying For CNC Status
The IRS Hardship Program is available to individual taxpayers, as well as small business owners and those who are self-employed. To apply, you will need to complete a Collection Information Statement (Form 433-A, 433-F, or 433-B). You should also file any past-due returns. This is where Top Dog Tax Relief can help. We specialize in helping taxpayers deal with unfiled tax returns and getting their financials in order. We can also facilitate your request for CNC status.
Once the IRS has your financial information, it considers several factors when reviewing your request for Currently Not Collectible (CNC) status. Generally, the following must be true:
Your annual income must be less than $84,000.
You have trouble covering your basic living expenses, such as housing, food, and medical care.
Your basic living expenses fall within the IRS guidelines and are considered reasonable.
If approved for CNC status, you must file and pay future taxes on time. Failure to do so will result in the IRS placing you back into collectible status, allowing wage garnishments and levies to resume. If you remain in CNC status for many years, however, your tax debt may be forgiven.
If your request for CNC status is declined, Top Dog Tax Relief can help you find other tax relief options to help you address your tax problems. This may include an Offer in Compromise or an installment agreement.