IRS Hardship Frequently Asked Questions (FAQs)
Q: What are other names of IRS Hardship?
A: You may hear many different names for IRS hardship and they all basically mean the same thing. The different names are the following: IRS Uncollectible Status, Status 53, Currently not collectible and CNC Status.
Q: What are the monthly amounts the IRS uses when considering someone for IRS hardship?
- $227 for food
- $85 for apparel and service
- $28 for housekeeping supplies
- $30 for personal care and services
- $87 for miscellaneous expenses
- $57 for Under 65 Health Care and $144 for over 65
- $163 for public transportation, more for ownership of cars and difference of region, see links below for more details
- $1,000 rough average for housing. Varies greatly by state and area.
Q: Where can I find detailed amounts the the IRS uses for common necessities?
- National Standards Food, Clothing and Other Items
- National Standards: Out-of-Pocket Health Care Expenses
- Local Standards: Housing and Utilities
- Local Standards: Transportation
Q: Is there a specific form to file for IRS Hardship?
A: No, there is not a specific form that can be used to file for hardship. You will need to work with the IRS and ask them to be considered for uncollectible status. In order to be considered you will be required to prove that the collection of tax would cause financial hardship and they will require you to fill out IRS form 433-A which will detailed financial information about you. They will also require detailed information about your monthly expenses.
Q: If I am declared currently not collectible will I ever have to pay the IRS?
A: Yes, you will still be required to pay the IRS. When you are declared uncollectible it is only temporary and the IRS will check back with you to see if your financial situation has improved enough for them to collect from you. There are some cases where someone can remain on uncollectible status for so long that the statute of limitations expires on the debt they owe and they legally do not have to pay it anymore.
Q: Are there other options I should consider before trying to be declared uncollectible?
A: Yes, you should consider other options before trying to be declared uncollectible. If you can make a small monthly payment toward the debt owed it is possible that you may qualify for an installment agreement or a partial payment installment agreement. If you can make the required payments with an installment agreement without causing financial hardship to yourself then it is likely you will be denied hardship status. If you are a good candidate for IRS hardship it is also a possibility that you may qualify for an offer in compromise. With an offer in compromise you can settle the taxes you owe for less.