Tax Hardship Program

What is Tax Hardship?

The IRS Tax Hardship Program, officially called "Currently Not Collectible" (CNC) status, is a temporary solution for taxpayers who are experiencing severe financial difficulty and cannot afford to pay their tax debt. If the IRS agrees that you are in a state of financial hardship, they will place your account in CNC status and halt all collection activities, including levies and garnishments.

This provides immediate relief and breathing room while you work to improve your financial situation.

What Qualifies as Financial Hardship?

To grant CNC status, the IRS must be convinced that collecting the tax from you would leave you unable to meet your basic living expenses. They use a strict set of standards to make this determination.

The Process to Apply for CNC Status

Requesting CNC status requires submitting a detailed financial statement to the IRS.

1. Filing Form 433-F or 433-A: You must complete a Collection Information Statement (Form 433-F, 433-A, or 433-B for businesses), providing a full picture of your income, expenses, and assets.
2. Providing Documentation: You must support your financial statement with proof, such as pay stubs, bank statements, and receipts for your monthly expenses.
3. Negotiation with the IRS: An IRS agent will review your submission. They may challenge your listed expenses or question the value of your assets. This is where professional representation is critical.

How We Can Help

Our team knows exactly what the IRS looks for when evaluating a CNC request. We will:

• Help you prepare a complete and accurate financial statement that properly reflects your hardship.
• Ensure all of your allowable living expenses are included and documented.
• Negotiate directly with the IRS agent to advocate for the approval of your CNC status.

If you are struggling to make ends meet and are burdened by tax debt, you may be a candidate for the Tax Hardship Program. Contact us today for a free and confidential evaluation of your situation.