If you can’t pay any of the amount due because payment would prevent you from meeting your basic living expenses, you can request that the IRS delay collection until you’re able to pay. If the IRS determines that you can’t pay any of your tax debt because of financial hardship, the IRS may temporarily delay collection by reporting your account as currently not collectible until your financial condition improves. Being currently not collectible doesn’t mean the debt goes away. It means the IRS has determined you can’t afford to pay the debt at this time. Penalties and interest continue to accrue until you’ve paid off the debt in full. The IRS may ask you to complete a Collection Information Statement of your financial status (including information about your assets and your monthly income and expenses) before approving your request to delay collection. The IRS may temporarily suspend certain collection actions, such as issuing a levy until your financial condition improves. However, the IRS may still file a Notice of Federal Tax Lien while your account is suspended.
Should you be indebted to the IRS you have a number of avenues to alleviate the consequences of the IRS’ collection activities. Seeking a temporary delay of collection may provide you additional time to devise a means to more fully resolve your tax debt. Our Law Office will assist you in using a temporary delay in collection , as well other tax debt resolution tools to devise a means to more fully resolve your tax debt.