Talking About Tax Services For Small Business Owners

How To Get Aprroved For Financial Hardship From The IRS

Most people are afraid of owing money to the Internal Revenue Service (IRS). The IRS can collect their money in a variety of ways, such as wage garnishment, a property lien, a property levy and through interest and penalties. If you are facing any of these IRS tax problems, then you need IRS problem solutions immediately. Read on to find out how to get approved for financial hardship from the IRS.

Must Be Declared Uncollectible

If you want to stop the Internal Revenue Service from trying to collect, then you need to get approved for economic hardship. To be declared uncollectible, you have to provide detailed financial history. This status is hard to obtain. You have to convince the IRS that collecting the money owed would create severe economic hardship.

Complete Form  Form 433-A

You have to fill out Form 433-A. This form must be filled out truthfully. The IRS uses Form 433-A to determine whether to collect or to wait until your financial standing improves.

 What Information Do You Need To Provide?

You will need several documents to complete Form 433-A. This includes information on employment, housing arrangements, the number of dependents, bank information, investments, social security, proof of disability, child support, legal proceedings and alimony. You will have to give the IRS copies of monthly bills that include food, housing, transportation, clothing, medical expenses, utility expenses and personal care.

You should talk to a tax professional before completing the paperwork. A tax professional can determine if filing for hardship is the best thing for your situation. You should understand that being classified as uncollectible does not solve your financial problems. It just prevent the IRS from trying collect money from you. After you have completed the form, you can submit it for review.

Choose Bankruptcy As A Last Resort

A bankruptcy releases you from all financial debts, which includes IRS taxes. It helps to explore your options before making this decision. This action damages your credit. A bankruptcy can prevent you from renting an apartment, buying a house, getting a job, buying a car and getting loans. For these reasons, a bankruptcy should be a last resort.

Most people hate to owe money. Owing money makes you feel uneasy and stressed. The IRS is one of those organizations that will take measures to collect back taxes. There are resources available to help with resolving your tax problems. It helps to take advantage of resources and pay your taxes on time.