Latest Facts and News
- The IRS provides various options for taxpayers who need help paying a tax bill.
- IRS announces tax relief for taxpayers impacted by wildfires in California by postponing the deadlines to October 15.
- IRS urges taxpayers to choose tax preparers carefully to protect their personal information.
Many taxpayers face financial hardships that make it difficult to meet IRS obligations. And when taxes go unpaid, the IRS can impose wage garnishments, tax liens, or even levies to recover the debt—making an already tough situation even worse.
But the good news is that help is available. The IRS itself offers the IRS Hardship Relief Program, which provides options to ease your financial burden. However, many taxpayers miss out simply because they don’t know how to qualify or apply.
That’s why we’ve created this guide: to break it all down for you. You’ll learn how the program works, who qualifies, and the steps to apply so you can take back control of your future.
What is the IRS Hardship Relief Program?
| The IRS Hardship Relief Program is designed for those who cannot afford to pay their tax debt without risking basic needs such as food, housing, or medical care. It provides a temporary halt to IRS collection actions while allowing taxpayers time to become financially stable before making payments. |
Eligibility Criteria for the Hardship Relief ProgramThere are many considerations in determining eligibility, and knowing them all can help you in preparing the proper documentation in order to avoid any unnecessary delays. Below are the key aspects the IRS considers when evaluating hardship status:
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Bonus: Understanding Why Your Tax Refund Wasn’t Sent After an Offer in Compromise
Types of Assistance Offered by the Program
The IRS Hardship Relief Program provides various tax debt settlement options for individuals and businesses who cannot pay their tax obligations. The IRS offers the following relief options:
Currently Not Collectible (CNC) Status
Taxpayers can argue that any installment payments toward tax debt would work an undue financial hardship on their abilities, and hence, the IRS can place taxpayers in Currently Not Collectible status.
In the CNC status, the IRS can halt all forms of collection action, including levies on a taxpayer’s paycheck and bank. Interest and penalties will continue to accrue while the taxpayer improves his or her financial situation.
Installment Agreement
The IRS offers Installment Agreements to taxpayers who are capable of paying smaller, more manageable amounts over time but are unable to pay the tax bill in full. This IRS payment plan eliminates immediate financial pressure because taxpayers pay through monthly payments instead of one single payment.
Depending on the financial status of taxpayers and the amount owed, taxpayers may qualify for either short-term or long-term installment plans.
Offer in Compromise (OIC)
In some cases, the taxpayers are permitted to pay less than their total tax liability. The taxpayers are permitted to pay less than the total amount that they owe to the IRS.
While considering the OIC applications, the IRS considers income, expense, asset equity, and general financial health. To know more whether you qualify for an Offer in Compromise or not, you can consult an expert at Hall’s IRS.
Innocent Spouse Relief
The Innocent Spouse Relief is an alternative for people whose tax obligations result from the action of their spouse or ex-spouse. They are protected against paying their spouse’s taxes if they qualify for the requirements of this relief.
Penalty Abatement
When any penalties imposed against you are eliminated by the IRS, this is known as a penalty abatement. The IRS may impose penalties for many different reasons, but the most frequent ones include accuracy, late filing, and nonpayment.
According to recent statistics, the IRS only abates roughly 11% of tax penalties, making it a rare practice. Abatements are also granted by the IRS on the basis of fairness; the taxpayer’s capacity to pay the tax, penalty, or interest owed is not taken into account.
Partial Payment Installment Agreement (PPIA)
A Partial Payment Installment Agreement (PPIA) is a payment plan with the IRS where you make monthly payments on your tax debt, but the full amount won’t be paid off before the IRS’s collection period ends.
First of all, paying your tax due in installments allows you to better handle this obligation. Second, you will pay the IRS less than what you owe when the payment agreement expires.
How to Apply for IRS Hardship Relief Program: Step-by-Step GuideThe IRS requires detailed financial records to assess whether you qualify for the program. To make sure that everything goes smoothly, follow these steps: Step 1: Complete IRS Form 433-A or 433-F Begin your application by completing IRS Form 433-A (for individuals) or Form 433-F (for self-employed taxpayers) and Form 433-B (for corporations and partnerships). Collection Information Statements are the names of the papers, which require all the information about your assets, obligations, revenue, and costs. Step 2: Provide Evidence of Earnings, Expenditures, and Resources You will need to provide supporting documentation with your application, such as utility bills, bank statements, pay stubs, and proof of rent or mortgage payments for the last three months. Step 3: Submit Your Application After completing the form and gathering your supporting documentation, you can mail the application for hardship relief to your local office of the IRS or you can also submit it online.
Step 4: Wait for the IRS Decision After submitting, the IRS will verify your financial conditions to determine whether you qualify for relief or not. It might take a few weeks to do this. If the IRS accepts your application, they can put your account in Currently Not Collectible status, which stops them from taking any collection actions against you. |
Get Expert Help with Your IRS Hardship Application!
There are too many procedures and paperwork involved in applying for IRS hardship relief. But you don’t have to do it by yourself!
With more than 200 years of experience, Hall’s IRS is assisting individuals like you in the process with ease.
Benefits of the IRS Hardship Relief Program
The IRS hardship relief program is designed for taxpayers who truly can’t afford to pay their tax debt without risking basic living needs. If you qualify, here’s what you can expect:
- Stops collections: The IRS pauses actions like wage garnishments, bank levies, and liens while you’re in the program.
- Protects essentials: Your income, home, and assets needed for daily living are generally safe from seizure
- No monthly payments required: In many cases, you won’t need to make payments while your account is marked as “Currently Not Collectible.”
- Time may work in your favor: If your financial situation doesn’t improve, the IRS’s collection window may close before you’re able to pay, and the remaining debt could expire.
- Gives you room to breathe: The hardship relief program helps you focus on regaining financial stability instead of living in fear of IRS action.
If you’re facing serious financial hardship, this program might be your best path forward. The hardship relief program isn’t permanent, but it offers a real chance to recover without drowning in tax debt.
Common Mistakes to Avoid During Application
Your financial situation may improve if you apply for the IRS Hardship Relief Program, but minor issues may result in delays or even rejection of your application.
To improve your chances of approval, use the checklist below to avoid common mistakes and ensure your application meets IRS requirements.
- Incomplete Financial Disclosures
- Ensure all fields on Form 433-A, 433-F, or 433-B are accurately completed.
- Double-check for any missing or incorrect information to prevent delays or rejection of your application.
- Ignoring IRS Requests
- Check your mail regularly for IRS follow-ups.
- Provide any additional documents requested without delay.
- Unrealistic Proposal
- Align your installment agreement with your actual financial situation.
- Avoid committing to unaffordable plans that may lead to default and further collections.
- Lack of Professional Help
- Avoid costly errors that may arise from applying on your own.
- Consider consulting a tax relief specialist like Hall’s IRS to maximize your chances of approval.
You can increase your chances of receiving IRS hardship relief and can accelerate the application process by avoiding these tax relief errors.
Simplify the IRS Hardship Relief Program Process with Hall’s IRS
Getting approved for the IRS hardship relief program isn’t easy—but you don’t have to go through it alone. Hall’s IRS helps you gather the right documents, prepare your case, and communicate clearly with the IRS from start to finish.
Our team knows exactly what the IRS looks for and how to present your financial situation in a way that supports your claim. If you’re struggling to pay your tax debt and need real help, now is the time to act.
Let’s start building a plan that gives you the breathing room you deserve. Reach out now!
FAQ's
Taxpayers who are unable to make their past tax payments are considered to be in IRS hardship. The IRS issues a “Currently Non-Collectable Status” on you if you are found eligible for the relief program.
You can qualify for IRS Hardship if you owe taxes but are unable to pay because you barely have enough money to sustain your family and yourself. While you are in IRS Hardship, the IRS will not seize your property, your pay cheque, or your bank account.
Yes, you can apply for the IRS Hardship Relief program online. The procedure to apply online for Hardship relief is:
- Fill out the online application form.
- Submit all the necessary documents.
- Wait for your Hardship relief approval via email.
- Accept the offer and take a sigh of relief.
The IRS hardship program review process can take anywhere from 45 to 180 days, depending on the complexity of your case. The IRS may request additional documentation for further verification of your income, expenses, and financial hardship status, which can also impact processing times.
Hardship relief is typically regarded as temporary since its goal is to offer immediate financial assistance to an individual or family experiencing financial difficulties rather than acting as a cure-all for underlying issues. When the crisis is resolved, the hardship relief period typically comes to an end.
Yes, the IRS can remove the uncollectable status and revoke the IRS hardship if they discover an increase in your income and find that you have overcome your financial difficulties and can pay your taxes. Once hardship status is revoked, collection actions such as wage garnishments or bank levies may resume unless you enroll in an alternative tax relief program.
