IRS Hardship Frequently Asked Questions (FAQs)

hardship faqQ: What are other names of IRS Hardship?

A: You may hear many different names for IRS hardship, and they all mean the same thing. The different names are the following: IRS Uncollectible Status, Status 53, Currently not collectible and CNC Status.

Q: Does a CNC or Currently Not Collectible Extend the Statute of Limitations?

A: No. However, interest and penalties continue to accrue.

Q: What are the monthly amounts for a two-person household when considering someone for IRS hardship status (2017)?

National Standards

  • $612 for food
  • $138 for apparel and service
  • $65 for housekeeping supplies
  • $63 for personal care and services
  • $254 for miscellaneous expenses
  • $49 for Under 65 Health Care and $117 for over 65
  • $189 for Public Transportation, $485 for ownership costs of one car, $970 for two cars
  • Note: National standards vary by household size. Find out more here.

Local Standards

Local standards include monthly allotments for housing, utilities, and transportation operating costs by region. In other words, these expenses are based on where you live in the country. Housing and utilities are based at the county level, whereas car operation costs are based at the regional level.

Q: Where can I find detailed amounts 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 the tax would cause financial hardship and they will require you to fill out IRS form 433-F which will detail 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 your tax returns every 2 years. 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 because a Currently Not Collectible Status or IRS hardship generally comes with a tax lien. If you can make a small monthly payment toward the debt owed it is possible that you may qualify for an 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.