What does the IRS mean by hardship status, and am I eligible to file for it?

Hardship status is another way for the IRS to say that a tax debt is currently not collectible. Simply put, it means that the taxpayer does not have the income or assets necessary to pay the tax debt in addition to paying for basic needs such as shelter, clothing, food, light, and heat.

If you believe that you cannot afford to make your basic payments and pay the IRS, then it is possible that you might be eligible to file for hardship status. The application process is a detailed one, and it is one of several options that you might consider when deciding how to satisfy your federal tax problems.

When a hardship status, or currently not collectible status, is granted, then the IRS must stop all collection activity. The agency can no longer put a lien on your Oklahoma property nor can it garnish your wages. Instead, you will receive an annual statement from the IRS that details how much you still owe when your financial situation changes and you are once again able to afford to pay your debt.

It can be challenging to decide whether this is the right option for you. Accordingly, we encourage you to research your options before filing for hardship status with the IRS. You can browse the free resources we have on this website, including our FREE book: The Ultimate Survival Guide for IRS Problems, and you can contact us directly to set up an appointment to discuss your options.