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 often
refers to this as a "hardship" status or Status Code 530
or "53" for short. 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 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. I recommend that you let an experienced professional do it for you. If you do it yourself - please
take your time. Do not ever let the IRS do it for you!
An alternative to having the account declared "currently not collectible" is an Offer in Compromise. Click below to learn
more about this program.