form 1310 irs This is a topic that many people are looking for. thetruthaboutdow.org is a channel providing useful information about learning, life, digital marketing and online courses …. it will help you have an overview and solid multi-faceted knowledge . Today, thetruthaboutdow.org would like to introduce to you How to get into IRS Hardship status. Following along are instructions in the video below:
“Owe the irs a lot of money and i m temporarily unable to pay this this is a comment that i hear again and again in my practice. And so thought i d take this opportunity today to make this short video to explain what to do in this particular situation. My name is darren mesh and i m a tax attorney with an international tax practice based in tampa florida. Now this video is one of twenty videos and if you d like to have access to the other 19.
Videos please visit our website at wowtcom. So what we re talking about today. Is called hardship or currently not collectible status hardship status also known as status 53. Sometimes with irs folks if you want to if you want to impress them that you really know what you re talking about them about you can you can indicate that you re asking for status 53.
It has to do its some interior of lingo at the irs and it has to do with what screen that they re looking at it happens to be screen number 53..
But hardship are currently not collectible status is not really a solution for an irs problem. It s not the be all end all in most cases. But it s when the irs agrees not to attempt to collect a tax debt for a specific period of time usually a year or two they will go ahead and go through your financial statement. And if there is no ability to pay indicated and proven with documentation on the financial statement.
Then they will agree to place you in this status for you again usually a year or two at a time it s a great immediate solution to protect yourself from collections. It will stop a levy. It will usually not stop the filing of a federal tax lien that s important to note. A federal tax lien is a notice to the world that you actually owe the money.
But there s no inherent collection action other than the lien other than the notice in the context of the federal tax lien..
A levy. Though is a garnishment or a seizure or taking. So that s a pretty important distinction. So a hardship determination will often or will stop levy action and will stop.
Other collection actions with the irs other than the following of a federal tax lien the required documentation that you need for a for obtaining hardship status is a form 433 and a forum for 33b if you re in business. If you re a corporation or an llc you also generally need at least three months documentation proving your expenses and your income. If you re dealing with the acs. Which is an acronym for the automated collection system.
Then you ll actually need to use form 433 f..
And usually you re gonna require some explanation of the hardship now let me give you some ideas of some explanations you re currently not working pretty good explanation. You don t have any money and so the irs can t can t collect the money. It s important to note that the irs cannot collect money from you when doing so would constitute an economic hardship. So now you should be asking well what in the world is an economic hardship well an economic hardship is when there is an inability for you to pay for life s basic necessities things like food clothing shelter medical care and so on so if the irs if forcing you to pay anything at all would force you into a situation that was causing an economic hardship.
Then the irs must puts you in hardship status or curve. Also known as currently not collectible status. There s one other thing that i d like you to know about hardship status. And that is that it is not permanent in duration again.
It s usually going to last for a year or two at a time there are some instances where the irs will put you in a semi permanent hardship status typically that is when you re elderly living on a fixed income perhaps you re disabled and so they ll put you on a quasi permanent status..
And what that means is they will go ahead and set it up so that if your adjusted gross income on a tax return exceeds some undetermined or predetermined. But undisclosed amount then they will go ahead and leave you in hardship status unless and until your adjusted gross income exceeds that number for example and i don t know what the number is and it varies from case to. Case but let s say that they put a target of 40000. For your adjusted gross income.
If you filed a return and you made forty one thousand dollars then that would trigger you coming out of hardship status and you start to get collection notices again. It s also important to know that the irs will continue to send you and you ll notice us because they re required to do so by law now if you d like access to the other twenty videos in this series again please visit our ” ..
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