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irs hardship status

irs hardship status

IRS Hardship: Getting Put on Uncollectible Status

Sometimes taxpayers come across unforeseen financial events and it puts them in a situation where they are simply not able to pay the IRS the taxes that are owed. The IRS understands that this happens and has the power to declare an individual uncollectible if they can prove to the IRS that the collection of the tax would cause financial hardship. This is also called status 53. Once the IRS approves, then this will temporarily stop collections. The IRS will follow up several months later to see the financial situation has improved enough in order to start collections again. This status won’t solve your tax problem but will buy you more time to deal with it.

How to be Declared Uncollectible by Proving Financial Hardship to IRS

The IRS declares individuals uncollectible on a case by case basis. They evaluate individuals to see if the enforced collection of taxes from them would create economic hardship. In order to pursue this resolution, you may be required to submit some IRS forms and lots of personal financial information to the IRS outlining your financial situation.

Filing for Hardship with the IRS and Being Declared Uncollectible

When filing for the currently uncollectible status you will be required to fill out detailed IRS forms as well as provide detailed information about your financial situation. It is important to provide the IRS with enough information to prove that you do not have the means to pay taxes owed and it would be in their benefit to stop collections and allow you more time.

Hardship/Uncollectible Status Frequently Asked Questions

Questions and answers to commonly asked questions about IRS hardship status.