Are You Having An IRS Financial Hardship?
The money needed for an American to pay taxes comes out of their paycheck. This enables most Americans to pay their taxes on time. But when the financial crisis hit, it left many people under the burden of a tax that seemed impossible to pay to the IRS. There are quite a few Americans still struggling from back taxes and making a comeback seems highly unlikely. Luckily there are quite a few tax breaks and agreements to help you out in such a situation.
You yourself might not even be aware of the ways that you can catch a break from all the back taxes and even help reduce your overall tax debt. It’s highly recommended that you go to a financial adviser though it may seem like a waste of money. A financial adviser will break down your taxes and financial assets to find possible refunds in your income along with chances for even weaving a reasonable amount of tax. Though a financial adviser’s fee may seem like quite a luxury in your present situation, think of all the money you get back and save this year and many more years to come.
The real issue at hand is that you don’t have the financial capability to meet the financial advisers. If you did, then you would already be paying your back taxes wouldn’t you? Don’t worry! There are quite a few ways besides a financial adviser to get the IRS to give you a break.
Filing Your Financial Hardship With The IRS
Try filing for a “hardship” with the IRS or put your bank account in the “currently not collectible” status. To gain any of the following two statuses, you need to gather all viable documents that prove you are incapable of paying your taxes in your present state of affairs.
Any document that proves you are financially incapable of paying taxes will help you get a break. Like if you are unemployed, you need to fill in the proper documentation to get down time. Pay stubs, monthly bills, hospital bills, low credit card balances all need to be submitted along with the documentations to show you are truly incapable of paying your massive back taxes.
Still not clear about what should be included? Consult with a tax consultant so that he can help you gather and organize the required information to submit to the IRS for financial hardships.
You will need to fill out the IRS Form 433-A after gathering the prerequisite information. You might also need some mathematical assistance from a calculator or someone good at general math’s to answer questions about your food, rent/mortgage, utilities purchased, transportation, housekeeping expenses, any services your might have bought in the recent years, and possibly even the sum of money you spent on buying a T-shirt from a local vendor.
In case you are rejected from being given a “hardship status”, there is no major need to worry as there are quite a few IRS programs to help those going through financial hardships. Also talking with a tax consultant can help you identify other options available to you besides a “hardship status” like installment payments.
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