What are other names of IRS Hardship?
You may hear many different names for IRS hardship and they all basically mean the same thing. The different names are the following: IRS Uncollectible Status, Status 53, Currently Not Collectible and CNC Status.
Is there a specific form to file for IRS Hardship?
No, there is not a specific form that can be used to file for hardship. You will need to work with the IRS and ask them to be considered for uncollectible status. In order to be considered you will be required to prove that the collection of tax would cause financial hardship and they will require you to fill out IRS form 433-A which details financial information about you. They will also require detailed information about your monthly expenses.
If I am declared currently not collectible will I ever have to pay the IRS?
Yes, you will still be required to pay the IRS. When you are declared uncollectible it is only temporary and the IRS will check back with you to see if your financial situation has improved enough for them to collect from you. There are some cases where someone can remain on uncollectible status for so long that the statute of limitations expires on the debt they owe and they legally do not have to pay it anymore.
Are there other options I should consider before trying to be declared uncollectible?
Yes, you should consider other options before trying to be declared uncollectible. If you can make a small monthly payment toward the debt owed it is possible that you may qualify for an installment agreement or a partial payment installment agreement. If you can make the required payments with an installment agreement without causing financial hardship to yourself then it is likely you will be denied hardship status. If you are a good candidate for IRS hardship it is also a possibility that you may qualify for an offer in compromise. With an offer in compromise you can settle the taxes you owe for less.