Having the account declared currently not collectible

Information about The Tax Resolution Company

If you are unable to pay anything monthly on your tax liability, one option is to have the account declared "currently not collectible".  The IRS refers to this as a "hardship" status or Status Code 530 or "53" for short.

Before the IRS will do this, they will try to determine if you have any assets to pay the tax such as cash, stocks and bonds, your home or a retirement plan. They may ask you to liquidate your retirement plan or borrow on your home.

Assuming you have no assets, they will do an analysis of your income and expenses to determine what your ability to pay monthly is. Of course, your definition of inability to pay may be different than the IRS's definition. Therefore, it will be necessary to provide income and expense information to the IRS. This may be done over the phone to a Revenue Officer, Automated Collections or Customer Service or you may be required to submit a Form 433-A or the abbreviated Form 433-F.

The purpose of this form is to identify seizable assets and income with which to pay the taxes. The way this form is completed is critical. TRC has vast experience in these cases and can help protect your assets from liquidation and assure that you are put in a hardship status if you qualify. Providing this information exposes you fully to the IRS. It is very important that you or your representative understand how this information will be interpreted and used - before the IRS gets it!

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