What Happens If You Cannot Afford Both Your Tax Debt And Your Living Expenses In South Carolina?
- David Greene
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If paying your IRS tax debt would leave you unable to cover your basic living expenses, you may have options. The IRS offers programs for taxpayers facing financial hardship, but qualifying requires accurate financial information and supporting documentation.
In this article, our South Carolina tax debt attorney explains how the IRS evaluates financial hardship, what expenses it considers necessary, and how legal guidance can help you pursue a realistic solution.
What Should You Do If Paying Your IRS Tax Debt Would Leave You Unable To Cover Your Basic Living Expenses?
The IRS has a program called Currently Not Collectible (CNC) status. If you qualify, you can request to be placed in this status by submitting financial information that shows your monthly income is less than, or only enough to cover, your necessary living expenses.
If the IRS determines that you qualify, it will generally place your account in CNC status for about two years. At that point, the IRS may contact you to review your current financial situation and determine whether your circumstances have changed.
What Does The IRS Consider Necessary Living Expenses When Evaluating Financial Hardship?
Each year, the IRS publishes national and state standards for what it considers necessary living expenses. These standards are based on data from the Bureau of Labor Statistics and are used to evaluate a taxpayer’s financial situation when determining eligibility for hardship relief.
When IRS tax debt collides with everyday expenses, knowing your options can make all the difference. David Greene has helped South Carolinians navigate IRS hardship programs, respond to collection efforts, and pursue solutions that fit their financial reality rather than making matters worse. He understands how the IRS evaluates financial hardship and works with clients to present their circumstances accurately and effectively.
If you're worried about choosing between paying the IRS and paying your bills, contact The Greene Law Firm, P.A. to discuss the options available to you.
How Can You Demonstrate Financial Hardship To The IRS?
To demonstrate financial hardship, you will need to complete IRS Form 433-F, which provides a detailed financial statement. Along with the form, you should submit supporting documentation that verifies the income, expenses, assets, and other financial information you report.
Can The IRS Reduce Or Stop A Wage Garnishment Because Of Financial Hardship?
The IRS may agree to reduce or stop a wage garnishment if you can demonstrate that it is creating a significant financial hardship. To do this, you will need to submit financial information along with supporting documentation showing that the amount being garnished prevents you from meeting your necessary living expenses.
Should You Contact The IRS Before You Fall Behind Or Stop Making Tax Payments?
If you know you are about to lose your job or anticipate that you will be unable to make your monthly tax payments, it is best to contact the IRS as soon as possible. Even if you have only missed one payment, do not wait to address the situation. Reaching out early can help you explore available options before the problem becomes more difficult to resolve.
How Can A South Carolina Tax Attorney Help Negotiate A Realistic Solution With The IRS?
An attorney who is knowledgeable about IRS procedures can be a valuable resource throughout the process. A tax attorney can help you:
- Properly complete the required financial statements.
- Identify deductions and allowable expenses recognized by the IRS.
- Present your financial situation as accurately and effectively as possible.
- Pursue the resolution option that best fits your financial circumstances.
Having experienced guidance can help ensure your financial information is presented correctly and improve your ability to seek the outcome you are trying to achieve.
Still Have Questions? Ready To Get Started?
For more information on South Carolina tax debt attorneys, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (864) 271-7940 today.
When IRS tax debt collides with everyday expenses, knowing your options can make all the difference. David Greene has helped South Carolinians navigate IRS hardship programs, respond to collection efforts, and pursue solutions that fit their financial reality rather than making matters worse. He understands how the IRS evaluates financial hardship and works with clients to present their circumstances accurately and effectively.
If you're worried about choosing between paying the IRS and paying your bills, contact The Greene Law Firm, P.A. to discuss the options available to you.