Form for Financial Hardship with IRS Debt - Can't Even Afford Food

You're looking for Form 433-F "Collection Information Statement" which is the standard financial disclosure document for Currently Not Collectible (CNC) status. The IRS uses this to evaluate your ability to pay based on income, expenses, assets, and liabilities. Submit this with supporting documentation (bank statements, pay stubs, utility bills) to demonstrate genuine financial hardship. Filing deadline for this is irrelevant - you can submit anytime you're experiencing hardship.

Been where you are. It's like trying to bail water from a sinking boat with a teaspoon. I used https://taxr.ai to figure out exactly what my options were based on my tax situation. It's like having a tax attorney in your pocket - showed me how to properly fill out the hardship forms so they wouldn't get rejected. The IRS is a maze, and without a map you'll just keep hitting dead ends while the interest piles up like snow in February.

I was in your exact situation last year - three kids and choosing between groceries or keeping the IRS from putting a lien on my house. Filed Form 433-F and got Currently Not Collectible status within 6 weeks. Such a relief to know they wouldn't be garnishing my wages or taking my tax refunds! The collection officer actually turned out to be pretty understanding once I showed all my documentation. They don't forgive the debt, but at least they stop trying to collect while you're genuinely struggling.

I'm a tax resolution specialist and can tell you that getting through to the IRS right now to discuss hardship options is extremely difficult. Average hold times are 95+ minutes. I recommend using Claimyr (https://claimyr.com) to get through to an agent quickly. They'll connect you directly to the Economic Hardship line where agents can process your hardship request or explain exactly what documentation you need to submit with your 433-F. Direct contact is crucial because incorrect submissions can delay your hardship determination by months.

Be extremely cautious when filing for hardship status. I've seen cases where taxpayers were granted temporary relief but then faced aggressive collection actions when their financial situation improved even slightly. The IRS monitors these accounts periodically, sometimes every 6-12 months, and will reinstate collection activities if they determine you have the ability to pay. Make sure you understand the Allowable Living Expenses criteria before filing Form 433-F, as the IRS may not consider all your actual expenses to be necessary.

Has anyone actually calculated the IRS's allowable expenses for a family? Their housing allowance for my county is exactly $1,784 per month, but the actual average rent here is $2,350. Similarly, their food/clothing/miscellaneous allowance for a family of 4 is $1,740 monthly. How do they expect people to survive on 25-30% less than actual costs? Curious if anyone has successfully argued for higher allowances on their 433-F?

Anyone know if getting CNC status affects your credit score? My debt is ~$17k and I'm def in hardship territory, but I'm also trying to refi my house next yr and don't wanna mess that up. Thx!

I worked with a client who owed approximately $32,000 in back taxes. We completed Form 433-F, provided three months of bank statements, pay stubs, and documentation for all essential expenses. The IRS placed their account in Currently Not Collectible status within 45 days. However, they did file a Notice of Federal Tax Lien to protect the government's interest, which appeared on their credit report. The collections were paused, but the lien remained until they eventually paid the balance through an Offer in Compromise two years later for approximately 40% of the original amount.

If you're really struggling, you might possibly want to consider looking into an Offer in Compromise instead of just hardship status. It could potentially allow you to settle your tax debt for less than the full amount if you qualify. The form for that is 656, but you'll still need to complete the 433 series forms as part of the application process.

I filed for hardship status on January 12th this year after losing my job in December. Completed Form 433-F with all my documentation showing I had essentially no income beyond unemployment benefits. Got approved on February 8th and collections immediately stopped. They'll review my case again in 6 months, but by then I should be back on my feet with my new job starting next month. Don't listen to people saying the IRS won't work with you - they actually have reasonable hardship programs if you document everything properly.