Comments on: IRS Currently Not Collectible/Hardship Status/Status 53

By: Darrin Mish

Darrin Mish — Tue, 08 Feb 2011 19:10:24 +0000

1. If your unallowable expenses are too high you won't qualify. Eg. a $2000 car payment.

2. If we said Liquid Assets, that was a mistake. It should say that your liquid assets plus your monthly disposable income are not enough to pay off the debt.

3. Trust agreement……a form 433-f and 433-a and 433-b are all signed under penalties of perjury. You must disclose your beneficial interest in all property, real or personal.

By: Darrin Mish

Darrin Mish — Tue, 08 Feb 2011 19:05:36 +0000

If the IRS sells the assets for at least $5000 it would.

By: nise

nise — Wed, 26 Jan 2011 15:56:54 +0000

My sister and brother in laws tax accountant filed their taxes wrong by inputing information on the wrong line for 2007 and 2008. Since the accountant has passed. IRS is threating to sieze all assets in 30 days if they do not pay 5k of penalties. If they sieze the assets does this clear them off the books?

By: Florence Manfra

Florence Manfra — Thu, 30 Dec 2010 01:06:15 +0000

I'm thinking of requesting 53 status but I've been reading some stuff online, and I don't understand the "why's" behind a couple of the statements:

1. "You cannot have expenses that are too high" or you may not be accepted as Currently Not Collectible – ISN'T THIS CONTRADICTORY?

2. "You will have to prove that your monthly expenses and your LIQUID ASSETS are GREATER than your monthly income". – IF YOUR LIQUID ASSETS are greater than your monthly income why would one want 53 status to begin with anyway?

Maybe the wording in the above two items were incorrect but nevertheless it caused me some confusion!

And one more thing – which I cannot seem to find anywhere on the Internet – if you have a Trust Agreement will the IRS seek it out, and must it be included on Form 433f?

By: Chris

Chris — Fri, 29 Jan 2010 22:51:00 +0000

Darrin,
I am an independent contractor with a week-old levy against earned commissions. I need the money to pay business expenses and stay in business. Is there any allowance for "hardship" or being able to keep some money for operating expenses?

It sounds like if I were an employee, I could have a majority of my regular income even with a levy in place. Why the different treatment for self-employed taxpayers who also have bills to pay? Is there any way around this or some code word I need to use?
Thanks, Chris

By: Darrin Mish

Darrin Mish — Fri, 22 Jan 2010 19:32:07 +0000

Katherine,

Unfortunately, even if you are placed in currently not collectible status, if you have a refund coming – they will take it. I suggest you get your audit reconsideration underway as soon as possible and file after it is cleared up. In the alternative, you might be able to get the Taxpayer Advocate involved, explain the potential hardship of not receiving your refund, and see if they can pull some strings to get you a refund check despite the balance pending.

By: Katherine Miller

Katherine Miller — Fri, 22 Jan 2010 06:04:14 +0000

I have the same problem as you Theresa and really need some help. I have a small daughter and I owe the IRS around 11000 due to an audit that I didn't know about. I have all the information to clear up the misunderstanding but they told me it would take 120 days to get it resolved. I was wondering if I could get placed in currently not collectible and still file my taxes for this year and receive my refund and clear up the problem with an audit reconsideration to reopen the audit and submit proof of my deductions. I really need to be able to file my income tax right away and receive my refund, but I am scared to do it when I know they will take it. I really can't afford to wait the 120 days to do the audit reconsideration and then however long it will take to get the results and have my debt cleared. Is currently not collectible a good move for me or will they still take my income tax if I am in currently not collectible status? Please help.

By: Theresa

Theresa — Fri, 02 Jan 2009 20:19:45 +0000

Hello, I am a single parent of 4 kids and I owed the irs around 10,000 but now with them taking my income tax refund and my stimulus payment this past year and along with me making a few payments, I owe around 5,000, Well I think I do because interest is piling up so I am probably back where I started from, I told the customers service rep back when I set up the payments that I did not have the money to make payments but I set them up anyway and now of course I dont have the money, I seriously can't pay the rest of this debt and if I dont get my income tax refund this year me and my kids will be out on the streets. What can I do so that the money they have already recieved can be payment in full or something. This economy is bad and hard working people are catching it bad. I am not trying to get away with anything but I just cant pay it, I cant do installments or anything. I Thank you I welcome your advice.

By: Darrin Mish

Darrin Mish — Thu, 04 Dec 2008 22:59:57 +0000

Bob,

Your tax liability is pretty low and I understand that your penalties & interest might be double that. The bad news is that the interest is very unlikely to be waived as there are special very restricted rules applicable to have the interest waived. You might very well qualify for penalty abatement (which means that you penalties would be waived). You must make this request in writing and you must send it by mail to the IRS. I would strongly recommend sending it via Certified Mail, Return Receipt Requested. In your penalty abatement request you will need to explain what your "reasonable cause" was that you filed to pay the tax. Best of luck to you.

By: bob

bob — Thu, 04 Dec 2008 21:01:20 +0000

correction amount owed $360 to irs and was told the pennaltys are more than double.