Question 1

What qualifies as IRS financial hardship?

Accepted Answer

Financial hardship means paying the tax debt would prevent you from meeting basic living expenses (food, housing, transportation, medical care). IRS considers disposable income, health status, age, dependents, and employment situation.

Question 2

What is Currently Not Collectible (CNC) status?

Accepted Answer

CNC status suspends IRS collection activity when hardship prevents payment. The debt remains but IRS stops levy, garnishment, and other collection actions. Status is reviewed periodically and may resume if financial situation improves.

Question 3

How does IRS determine allowable living expenses?

Accepted Answer

IRS uses Collection Financial Standards that set national and local allowances for housing, transportation, food, clothing, and other necessities. Expenses exceeding standards may not be fully allowed, affecting hardship determination.

Question 4

Can I get hardship relief without filing Form 433?

Accepted Answer

Generally, hardship determination requires Form 433-A (individuals) or 433-F (simplified). The form discloses all income, assets, and expenses. IRS uses this to determine reasonable collection potential and hardship eligibility.

Question 5

Does hardship status expire?

Accepted Answer

CNC status is reviewed annually by IRS. If your income increases or circumstances change, IRS may reassess and resume collection. The 10-year collection statute continues running during CNC status.

Tax Hardship Assessment Calculator

Financial Information

Personal Circumstances

Hardship Assessment

Hardship Score

Monthly Disposable

CNC Eligible

Recommendation

Hardship Factors Identified:

IRS Hardship Programs

Currently Not Collectible (CNC)

Reduced Installment Agreement

Offer in Compromise (Doubt as to Collectibility)