--- title: Financial Hardship Status Can Ease IRS Stress description: Dealing with an outstanding IRS tax debt is a stressful situation but it can be even more difficult to handle if you're facing a financial hardship. image: https://www.toptaxdefenders.com/hs-fs/file-251081217-jpg/images/stressedbaldguysmall.jpg --- [(866)866-1555](tel:866-866-1555) | [Contact](https://www.toptaxdefenders.com/contact-us) [![Top Tax Defenders](https://www.toptaxdefenders.com/hs-fs/hubfs/images/nov_15/ttd_logo_test_new.png?width=314&height=64&name=ttd_logo_test_new.png "Top Tax Defenders")](https://www.toptaxdefenders.com) # Tax Matters - The Top Tax Defenders Blog # Financial Hardship Status Can Ease IRS Stress By Top Tax Staff | Jul 6, 2012 6:00:00 AM | [IRS Collections](https://www.toptaxdefenders.com/blog/topic/irs-collections) [![Share on Facebook](https://static.hubspot.com/final/img/common/icons/social/facebook-24x24.png)](http://www.facebook.com/share.php?u=https%3A%2F%2Fwww.toptaxdefenders.com%2Fblog%2Fbid%2F147506%2Ffinancial-hardship-status-can-ease-irs-stress%3Futm_medium%3Dsocial%26utm_source%3Dfacebook) [![Share on LinkedIn](https://static.hubspot.com/final/img/common/icons/social/linkedin-24x24.png)](http://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.toptaxdefenders.com%2Fblog%2Fbid%2F147506%2Ffinancial-hardship-status-can-ease-irs-stress%3Futm_medium%3Dsocial%26utm_source%3Dlinkedin) [![Share on Twitter](https://static.hubspot.com/final/img/common/icons/social/twitter-24x24.png)](https://twitter.com/intent/tweet?original_referer=https%3A%2F%2Fwww.toptaxdefenders.com%2Fblog%2Fbid%2F147506%2Ffinancial-hardship-status-can-ease-irs-stress%3Futm_medium%3Dsocial%26utm_source%3Dtwitter&url=https%3A%2F%2Fwww.toptaxdefenders.com%2Fblog%2Fbid%2F147506%2Ffinancial-hardship-status-can-ease-irs-stress%3Futm_medium%3Dsocial%26utm_source%3Dtwitter&source=tweetbutton&text=Financial%20Hardship%20Status%20Can%20Ease%20IRS%20Stress) [![Share on Pinterest](https://static.hubspot.com/final/img/common/icons/social/pinterest-24x24.png)](http://pinterest.com/pin/create/button/?url=https%3A%2F%2Fwww.toptaxdefenders.com%2Fblog%2Fbid%2F147506%2Ffinancial-hardship-status-can-ease-irs-stress%3Futm_medium%3Dsocial%26utm_source%3Dpinterest&media=) [![Share on Email](https://static.hubspot.com/final/img/common/icons/social/email-24x24.png)](mailto:?subject=Check%20out%20https%3A%2F%2Fwww.toptaxdefenders.com%2Fblog%2Fbid%2F147506%2Ffinancial-hardship-status-can-ease-irs-stress%3Futm_medium%3Dsocial%26utm_source%3Demail%20&body=Check%20out%20https%3A%2F%2Fwww.toptaxdefenders.com%2Fblog%2Fbid%2F147506%2Ffinancial-hardship-status-can-ease-irs-stress%3Futm_medium%3Dsocial%26utm_source%3Demail) ![How to File for Financial Hardship](https://www.toptaxdefenders.com/hs-fs/hubfs/How%20to%20File%20for%20Financial%20Hardship.jpg?width=999&name=How%20to%20File%20for%20Financial%20Hardship.jpg) Dealing with an outstanding IRS tax debt is a stressful situation but it can be even more difficult to handle if you're facing a financial hardship. These situations, which could be caused by any number of factors, are not unusual for taxpayers who owe and want to [settle back taxes](https://www.toptaxdefenders.com/tax-solutions/settle-back-taxes/). This is why the IRS extends a special provision for those who are dealing with financial hardship - the "Hardship" status which places a temporary freeze on your repayment requirements until your economic situation improves. **[![ARE YOU FACING UNPAID TAXES? UNDERSTAND THE COLLECTION NOTICES YOU MAY RECEIVE »](https://hubspot-no-cache-na2-prod.s3.amazonaws.com/cta/default/139062/3e2a3edc-8e69-497f-8999-fb067b4479c3.png)](https://hubspot-cta-redirect-na2-prod.s3.amazonaws.com/cta/redirect/139062/3e2a3edc-8e69-497f-8999-fb067b4479c3)** **Possible Tax Designations** The "Hardship" status is also known as the "currently not collectible" designation. Both terms refer to the same thing - an account that has been halted due to low income or inability to meet basic living expenses while repaying the tax. A common example of this situation is an individual who has been disabled and is unable to work for a living. Along with the reduced income of not working regularly, this person may also have staggering medical bills to care for which the IRS could qualify as a "hardship" situation. **[![DO YOU NEED IRS TAX HELP? SCHEDULE A FREE CONSULTATION WITH OUR TAX EXPERTS »](https://hubspot-no-cache-na2-prod.s3.amazonaws.com/cta/default/139062/758dc20d-7fa2-4e2a-a2ae-b124ff4cd561.png)](https://hubspot-cta-redirect-na2-prod.s3.amazonaws.com/cta/redirect/139062/758dc20d-7fa2-4e2a-a2ae-b124ff4cd561)** **Applying for the Financial Hardship Provision** To be considered for this arrangement, you'll have to fill out IRS Form 433-A which requires you to submit detailed information about your incoming income, the value of your assets and your current expenses. Part of this information includes stating the monthly amounts of your food, transportation, utility and mortgage payments. In order to have your request granted your amount of funds for each expense must not exceed a certain amount listed in the National Standards. What happens if you don't qualify for the financial "hardship" status? You can still take advantage of other options to resolve your tax debt. You can request an offer in compromise which allows you to settle your debt for cents on the dollar. But since the IRS does not freely extend this offer to many taxpayers you may have to resort to establishing an installment agreement. This arrangement allows you to break up your total debt into monthly payments, which you can send in on the day of your choosing. Establishing an installment arrangement is fairly simple and can be done at any time through the mail or over the Internet. Regardless of exactly what method you use to settle your tax debt you'll have plenty of options when you're requesting to have your account reviewed due to financial hardship. If you meet the standards you may qualify to have your repayments halted for a time.   [![eBook---audit-graphic-download](https://hubspot-no-cache-na2-prod.s3.amazonaws.com/cta/default/139062/49ee9f6d-3e31-45bb-8e3c-2949d930c1b1.png)](https://hubspot-cta-redirect-na2-prod.s3.amazonaws.com/cta/redirect/139062/49ee9f6d-3e31-45bb-8e3c-2949d930c1b1) COMMENTS ### SUBSCRIBE VIA EMAIL ### POSTS BY TOPIC - [Tax Tips and Help (287)](https://www.toptaxdefenders.com/blog/topic/tax-tips-and-help) - [IRS Collections (121)](https://www.toptaxdefenders.com/blog/topic/irs-collections) - [IRS Audit (72)](https://www.toptaxdefenders.com/blog/topic/irs-audit) - [Tax Credits and Deductions (69)](https://www.toptaxdefenders.com/blog/topic/tax-credits-and-deductions) - [Tax Resolution (62)](https://www.toptaxdefenders.com/blog/topic/tax-resolution) - [Business Taxes (53)](https://www.toptaxdefenders.com/blog/topic/business-taxes) - [Back Taxes (51)](https://www.toptaxdefenders.com/blog/topic/back-taxes) - [Wage Garnishment (22)](https://www.toptaxdefenders.com/blog/topic/wage-garnishment) - [Tax Levies (19)](https://www.toptaxdefenders.com/blog/topic/tax-levies) - [IRS Payment Plans (15)](https://www.toptaxdefenders.com/blog/topic/irs-payment-plans) - [Tax Liens (14)](https://www.toptaxdefenders.com/blog/topic/tax-liens) - [Offer in Compromise (9)](https://www.toptaxdefenders.com/blog/topic/offer-in-compromise) - [Unfiled Tax Returns (9)](https://www.toptaxdefenders.com/blog/topic/unfiled-tax-returns) - [IRS Tax Attorneys (7)](https://www.toptaxdefenders.com/blog/topic/irs-tax-attorneys) - [Asset Seizure (6)](https://www.toptaxdefenders.com/blog/topic/asset-seizure) - [Tax Evasion (6)](https://www.toptaxdefenders.com/blog/topic/tax-evasion) - [Criminal Tax Defense (4)](https://www.toptaxdefenders.com/blog/topic/criminal-tax-defense) - [Innocent Spouse Relief (4)](https://www.toptaxdefenders.com/blog/topic/innocent-spouse-relief) [see all](https://www.toptaxdefenders.com/blog/bid/147506/financial-hardship-status-can-ease-irs-stress#) ### RECENT ARTICLES ### POPULAR ARTICLES Aenean sollicitudin, lorem quis bibendum auctor, nisi elit consequat ipsum. 11222 Richmond Avenue Suite 235, Houston, TX 77082 Copyright 2026 Top Tax Defenders. 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