Whether or not you file taxes as an individual, a small business owner, or a corporation, the basic concepts are the same. You should always take the time throughout the year to ensure that you have made the necessary arrangements for tax season. This means setting aside an estimated amount to cover taxes owed. You quite literally can not afford to procrastinate in being prepared to pay any taxes you may owe when it’s time to file your taxes.
The IRS does not play around with those who let their tax debts become delinquent. The IRS has demonstrated this time and again as they have taken action against countless taxpayers, no matter what their filing status may have been, to collect on what they were owed. If you find that you are in the midst of a conflict with the IRS, don’t fret, there is still hope of being able to salvage the situation. When your tax debt is causing undue stress and hardship on your finances, a federal IRS tax relief hardship program might be just what you need.
Tax lingo can leave someone that’s not trained in the intricacies of tax law scratching their head and trying to comprehend what they just read. The type of language used by the IRS when explaining their rules and regulations is very intentional and is better understood when you seek out professional help with the services offered at Solvable. The IRS hardship program can be found buried in Section 1 of Chapter 16 within Part 5 of the Internal Revenue Manual (IRM).
This section of the IRM outlines a provision for what is defined as a Currently Not Collectable (CNC) status. Stringent qualifications help the IRS determine your eligibility when it comes to their hardship program. For starters, the IRS will have to review your predicament to ascertain if collecting the taxes you are liable for would cause an undue hardship which in turn would disrupt the living expenses necessary for you to survive.
The information that the IRS will need to make such a decision is obtained from the following Collection Information Statement forms:
The information that these forms collect is as follows:
The information that the IRS acquires from these Collection Information Statements is sensitive in nature. They require you to disclose financial information that some may see as being too intrusive. One determining factor when looking to qualify for an IRS hardship program is that you only have the means to support your family and to just barely scrape by. After you have decided to provide the information and to continue the process of trying to be approved for an IRS hardship program, the qualifications are as follows:
The CNC status typically doesn’t apply to large corporations and bankruptcy may be a better option for corporations with delinquent taxes. Instead, the CNC status applies to:
If you feel that the requirements to qualify for an IRS hardship program go beyond what you are willing to disclose to the IRS, there are other options available for resolving tax debt with the IRS. The following might serve as a better route for you to pursue:
No matter the option you choose when working to balance between supporting your family and paying the debt you owe to the IRS, it will be better to take action than to do nothing. The IRS is remarkably unforgiving when it comes down to delinquent taxes and can be relentless in their collection efforts. Don’t hesitate to find the help of a tax professional when facing the impossible odds of tax debt with the IRS. Solvable’s services can connect you with vetted tax professionals ready to work on your behalf to settle any tax issues you need to be resolved.