Comments on: IRS Currently Not Collectible/Hardship Status/Status 53 http://www.getirshelp.com/irsblog/194/irs-currently-not-collectiblehardship-statusstatus-53/ The First & Preeminent Blog in the World on IRS Problems and How to Solve Them!! Fri, 12 Mar 2010 18:43:37 -0400 hourly 1 By: Chris http://www.getirshelp.com/irsblog/194/irs-currently-not-collectiblehardship-statusstatus-53/#comment-33149 Chris Fri, 29 Jan 2010 22:51:00 +0000 http://www.getirshelp.com/irsblog/?p=194#comment-33149 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 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 http://www.getirshelp.com/irsblog/194/irs-currently-not-collectiblehardship-statusstatus-53/#comment-33131 Darrin Mish Fri, 22 Jan 2010 19:32:07 +0000 http://www.getirshelp.com/irsblog/?p=194#comment-33131 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. 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 http://www.getirshelp.com/irsblog/194/irs-currently-not-collectiblehardship-statusstatus-53/#comment-33130 Katherine Miller Fri, 22 Jan 2010 06:04:14 +0000 http://www.getirshelp.com/irsblog/?p=194#comment-33130 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. 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 http://www.getirshelp.com/irsblog/194/irs-currently-not-collectiblehardship-statusstatus-53/#comment-24652 Theresa Fri, 02 Jan 2009 20:19:45 +0000 http://www.getirshelp.com/irsblog/?p=194#comment-24652 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. 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 http://www.getirshelp.com/irsblog/194/irs-currently-not-collectiblehardship-statusstatus-53/#comment-24030 Darrin Mish Thu, 04 Dec 2008 22:59:57 +0000 http://www.getirshelp.com/irsblog/?p=194#comment-24030 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. 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 http://www.getirshelp.com/irsblog/194/irs-currently-not-collectiblehardship-statusstatus-53/#comment-24029 bob Thu, 04 Dec 2008 21:01:20 +0000 http://www.getirshelp.com/irsblog/?p=194#comment-24029 correction amount owed $360 to irs and was told the pennaltys are more than double. correction amount owed $360 to irs and was told the pennaltys are more than double.

]]> By: bob http://www.getirshelp.com/irsblog/194/irs-currently-not-collectiblehardship-statusstatus-53/#comment-24028 bob Thu, 04 Dec 2008 20:58:41 +0000 http://www.getirshelp.com/irsblog/?p=194#comment-24028 I owe $36 Fedtax on $13,000 income from year 2006 and I am getting hit with all kinds of penalties, I was injured in a car accident, left dissabled, recieved nothing and as a result have trouble finding employment. I live in am expensive part of the country, sandiego, And have nothing left over after rent and food. Can I get tax penelty relief?, I can only afford to pay the original amount I owe. I herd in hardship casses you can get some form of relief. Need to knowe fast intrest is compounding. Should I pay it, become homless and go on well fair or can I get relief from tax penalties. Thank you I owe $36 Fedtax on $13,000 income from year 2006 and I am getting hit with all kinds of penalties, I was injured in a car accident, left dissabled, recieved nothing and as a result have trouble finding employment.
I live in am expensive part of the country, sandiego, And have nothing left over after rent and food.
Can I get tax penelty relief?, I can only afford to pay the original amount I owe. I herd in hardship casses you can get some form of relief. Need to knowe fast intrest is compounding. Should I pay it, become homless and go on well fair or can I get relief from tax penalties.
Thank you

]]> By: Robert http://www.getirshelp.com/irsblog/194/irs-currently-not-collectiblehardship-statusstatus-53/#comment-23327 Robert Tue, 28 Oct 2008 00:30:19 +0000 http://www.getirshelp.com/irsblog/?p=194#comment-23327 Darrin: I just listened to your video and have a couple of questions for you. I have a tax lien from Alabama for $15,000 most of it penalities and interest. I have not filed income taxes for the past 6 years, I have been out of work on and off for the past 6 months, my wife works part time and we have no money to pay these taxes. Also, I had a heart attack last Novemeber and couldn't work for some time. Could I file a hardship for my taxes, or would bankrupcy chapter 7 help us? Darrin:

I just listened to your video and have a couple of questions for you. I have a tax lien from Alabama for $15,000 most of it penalities and interest. I have not filed income taxes for the past 6 years, I have been out of work on and off for the past 6 months, my wife works part time and we have no money to pay these taxes. Also, I had a heart attack last Novemeber and couldn't work for some time. Could I file a hardship for my taxes, or would bankrupcy chapter 7 help us?

]]> By: Darrin Mish http://www.getirshelp.com/irsblog/194/irs-currently-not-collectiblehardship-statusstatus-53/#comment-20854 Darrin Mish Thu, 21 Aug 2008 16:12:48 +0000 http://www.getirshelp.com/irsblog/?p=194#comment-20854 I can't really advise you specifically without a lot more information. Depending upon the answers to my questions, we might be able to get the levy released or reduced. Sometimes without you missing even one paycheck. I can't really advise you specifically without a lot more information. Depending upon the answers to my questions, we might be able to get the levy released or reduced. Sometimes without you missing even one paycheck.

]]> By: Benjamin http://www.getirshelp.com/irsblog/194/irs-currently-not-collectiblehardship-statusstatus-53/#comment-20853 Benjamin Thu, 21 Aug 2008 16:06:07 +0000 http://www.getirshelp.com/irsblog/?p=194#comment-20853 Darren, Just listened to your video on hardship status. You seem like a pretty decent guy, personable, good humor, and probably not a rip off. Im pretty screwed right now. I just got a levy for $12 grand, my paycheck is going to disappear. I also have an outstanding debt of about 40 grand, with interest growing. I used to make quite a bit of money as an internet marketer but the company split, and overnight my cash was gone. Essentially I stuck my head in the sand. Well I am the search manger for a marketing firm now, but Im not making near what I was. Low 40's now. There is no way I can pay this money back. I am in collection for medical stuff, my rent is high, my salary is low. Essentially I am trying to figure out if this OIC is something I can tackle myself, should I pay someone - if so how much, should I even bother? Hell, I don't know. I wasn't even going to consider talking to one of those pennies on the dollar guys, Ive been an online marketer too long to fall for that but you seem to at least give the impression of being on the level, so I thought I might ask your advice. I just signed off on the levy so my next check is going to be gone.. Damn the man. Darren, Just listened to your video on hardship status. You seem like a pretty decent guy, personable, good humor, and probably not a rip off. Im pretty screwed right now. I just got a levy for $12 grand, my paycheck is going to disappear. I also have an outstanding debt of about 40 grand, with interest growing. I used to make quite a bit of money as an internet marketer but the company split, and overnight my cash was gone. Essentially I stuck my head in the sand. Well I am the search manger for a marketing firm now, but Im not making near what I was. Low 40's now. There is no way I can pay this money back. I am in collection for medical stuff, my rent is high, my salary is low. Essentially I am trying to figure out if this OIC is something I can tackle myself, should I pay someone – if so how much, should I even bother? Hell, I don't know. I wasn't even going to consider talking to one of those pennies on the dollar guys, Ive been an online marketer too long to fall for that but you seem to at least give the impression of being on the level, so I thought I might ask your advice. I just signed off on the levy so my next check is going to be gone.. Damn the man.

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