Q. How Can I be Given Hardship or Currently Not Collectible Status by the IRS?

If you are unable to make installment payments and can prove that enforcement of an IRS Levy would create economic hardship by depriving you of basic living necessities the IRS will classify you as currently uncollectible and grant hardship status.
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Feb. 10, 2011 - PRLog -- This information is provided by Flat Fee Tax Service, the nationwide leader in having an IRS Wage Levy stopped and released.

"Currently Uncollectable" - Also known as Currently not Collectible is a method for delaying payment (possibly eliminating payment) of your IRS Tax debt. The Flat Fee Tax Team, led by an IRS Tax Attorney, will work to convince the IRS that you have no way of paying your IRS Tax debt at this time.

When you, the taxpayer, are unable to make installment payments and can prove that enforcement of an IRS Wage levy/IRS Wage Garnishment would create significant undue economic hardship by depriving the taxpayer of basic living necessities the IRS and some States will classify the account as currently uncollectible and grant hardship status to suspend collection activity.

For a free consultation regarding your IRS Tax Debt, Contact Flat Fee Tax Service.

The Flat Fee Tax Service IRS Tax Relief Help-line:

1 - 888 - 875 - 4506


Q. What is a IRS Hardship or "Currently Not Collectible" and How will the IRS Grant Me "Currently Uncollectable" status?

If a taxpayer is unable to pay his or her back tax liability, and collection activity would create an economic hardship, the IRS will consider placing the account in a hardship or "currently not collectible" status. In considering a taxpayer’s back tax account for “hardship” status the IRS will compare the taxpayer’s monthly gross income against what the IRS calls “allowable” expenses. IRS monthly allowable expenses are national averages for food, clothing, miscellaneous expenses, housing, transportation, car payment, child support, secured loans, health insurance and medical expenses, as well as proper tax withholding and payments. These “allowable” amounts vary depending on your household size and as well as local standards. Local standards take into account the area of the country in which you live. As an example, it would cost you more for housing in Boston, New York City, San Francisco than it would in Little Rock, Arkansas.

“Hardship” is a very subjective term and even though a taxpayer’s monthly expenses may exceed IRS allowable amounts, it does not mean that Currently Not Collectible status is not warranted or achievable. As an example, you may have excessive medical expenses in caring for yourself or a loved one, and “hardship” status may still be granted. In all cases in order to be consider currently not collectible, the taxpayer must provide the IRS with financial information on IRS Form 433A, and you will need to supply supporting documentation. If a taxpayer is over IRS allowable expenses in a situation such as the above example, supporting documentation is even more critical. Understand that the IRS is going to look at your circumstances with a critical eye, and frivolous or fraudulent claims in an attempt to gain “hardship” status carry severe penalties, including criminal charges.

Being placed in a “hardship” or Currently Not Collectible status is not a permanent solution to a tax problem. A taxpayer that is Currently Not Collectible will have his or her status reviewed every 18 to 24 months by the IRS to determine if “hardship” status is still warranted.

Currently Not Collectible has strategic planning merit if other viable solutions to a tax problem exist. As an example, if you are close to the collection statute expiration date on a given tax assessment, being put into a “hardship” or Currently Not Collectible status for the remainder of that statutory period would result in the relief of those tax liabilities once that date has passed.

It is possible that you may never pay your tax debt.

Additionally, a taxpayer may be considering bankruptcy and a temporary placement in “hardship” status may allow a taxpayer to wait out any remaining statutory time necessary before those back tax liabilities become dischargeable in a bankruptcy proceeding. These strategies and techniques require professional analysis in most cases, it’s important to consider such advice before making any decisions in handling your tax problem.

If you do not have the income presently to pay your tax liability to the IRS or if you are on Social Security / Social Security Disability (SSDI), you may be eligible for "hardship" or Currently Not Collectible status.

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Flat Fee Tax Service keeps its fees as low as possible because we do not waste 20 to 25% of your fees on commissions to salesmen. Flat Fee Tax Service does not spend money on expensive television ads.

Nearly all of our clients at Flat Fee Tax Service are derived from referrals by our satisfied clients.

FLAT FEE TAX SERVICE: Good People - Doing Great Work

The Flat Fee Tax Service IRS Tax Relief Help-line:

1 - 888 - 875 - 4506


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FLAT FEE TAX SERVICE guarantees to havean IRS Wage Garnishment / IRS Wage Levy within 1 to 2 business days or you don't pay.
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