The IRS understands that all taxpayers due to financial circumstances in their life cannot pay the IRS at the current time. The Internal Revenue Service has what is called the currently not collectible or hardship program that taxpayers can enter onto to stop the IRS collection process on back taxes.

keep in mind this is a temporary delay of the collection process which usually lasts between one and three years. during this period of time if IRS agrees to put your case into currently not collectible you must file and pay your taxes timely moving forward if not IRS will send the case back out in the enforcement letters and enforcement action will follow.

Temporarily Delay the Collection Process

If IRS determines that you cannot pay any of your tax debt, we may report your account currently not collectible and temporarily delay collection until your financial condition improves.

Being currently not collectible does not mean the debt goes away, it means the IRS has determined you cannot afford to pay the debt at this time.

How To do this:

Prior to approving your request to delay collection, IRS may ask you to complete a Collection Information Statement (Form 433-F, Form 433-A or Form 433-B) and provide proof of your financial status (this may include information about your assets and your monthly income and expenses).

You should know that if the IRS does delay collecting from you, your debt will increase because penalties and interest are charged until you pay the full amount.

During a temporary delay, IRS will again review your ability to pay.

IRS may also file a Notice of Federal Tax Lien to protect the government’s interest in your assets.