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Prove Financial Hardship

financial-hardship Tax Problem Solver

If you truly cannot afford to pay your IRS tax bill, you may qualify for hardship status. Basically, a financial hardship is a situation that forces you to decide between meeting your basic living expenses or paying your tax debt. To prove financial hardship, the IRS requires detailed information about your income and expenses.

Prove Financial Hardship

financial-hardship Tax Problem Solver

If you truly cannot afford to pay your IRS tax bill, you may qualify for hardship status. Basically, a financial hardship is a situation that forces you to decide between meeting your basic living expenses or paying your tax debt. To prove financial hardship, the IRS requires detailed information about your income and expenses.

Proving Financial Hardship Means Having All Your Ducks in a Row.

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Financial hardship is highly subjective as a descriptive term of one’s financial situation. You and the IRS certainly view the phrase from different perspectives, but the IRS does define the phrase very specifically. Understanding the criteria and documentation required to substantiate a hardship situation is vital when dealing with the government.

How the IRS Defines Financial Hardship
The IRS considers an economic hardship the inability to pay reasonable and necessary living expenses. The IRS determines what expenses qualify as basic expenses, which will vary depending on your circumstances. Generally, basic expenses include your rent or mortgage, utilities, food, transportation, and health care. And by the way, the IRS states that qualifying circumstances do not include a luxurious standard of living and credit card payments are usually not allowed. A qualified tax attorney can help you navigate this often complex array of document collection, form requirements and background information.

Do you Qualify for uncollectible status?
The best outcome you can hope for is to achieve “uncollectible” status from the IRS. To be declared uncollectible by the IRS or currently not collectible (CNC), you will have to prove to the them that if they were to collect taxes owed, it would create an unfair economic hardship. Depending on the amount of your tax debt, the IRS is likely to ask you to detail your financial situation before placing your account on a CNC status.
Although basic information is enough to substantiate your situation with some creditors, the government requires additional documentation.
This may include:

  • Mortgage loan documents or your lease agreement
  • Copies of bills for monthly expenses such as utilities, telephone, transportation, insurance, and child care
  • A copy of the court order for child support or spousal support payments
  • Copies of hospital and doctor bills


The Tax Problem Solver Team can help you organize copies of documents that support your expenses, income, assets, and liabilities. Because just a small percentage of people can qualify for financial hardship relief, having this information properly organized and prepared for how the IRS reviews your submission can increase the probability of being approved as a financial hardship case.

Don’t Ignore the IRS – Things Get Bad Quickly!


We’re Here to Help!
Larry Heinkel and the Tax Problem Solver tax professionals can be of great benefit in helping you avoid potential pitfalls by assisting in completing all the correct forms and identifying all allowable expenses. With Larry and his 35 plus years of experience on your side, you can be assured of pursuing the best possible solution for your particular situation.

Your best bet is to get a free consultation with the Tax Problem Solver team and put their vast knowledge of how the IRS works to work for you!

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Larry Talks About How He and The Tax Problem Solver Team will Work with You to Create a Game Plan to Solve Your Tax Debt Situation Before It Gets Worse.

Unlike Our Competitors, We Employ Only Accomplished and Compassionate Tax Attorneys
and Tax Resolution Specialists, Who Work as a Team to Solve Your Problems.

LARRY HEINKEL, J.D. LL.M.
TAX & BANKRUPTCY ATTORNEY

APRIL SERRANO, E.A., CTRS
ENROLLED AGENT &
CERTIFIED TAX RESOLUTION SPECIALIST

PATRICIA O’DONNELL, J.D.
LEGAL ADVISOR

KENTON SANDS, J.D., LL.M.
TAX ATTORNEY
(OF COUNSEL THROUGH SANDS WHITE & SANDS, P.A.)

JOE MCDERMOTT, E.A.
FORMER IRS APPEALS OFFICER

Why You Should Choose the Tax Problem Solver Team!

  • Your case will be reviewed by an expert Tax Attorney and other tax professionals including Certified Public Accountants and Enrolled Agents – on-staff and in-house – at your disposal.
  • Being Tax Attorneys, we have all the available tools at our disposal for your best tax resolution outcome.
  • Experience! For nearly 40-years, I've helped thousands of taxpayers WIN. My team and I know how the IRS thinks and works. Put our experience on your side.
  • We provide personalized attention to the details of each case, representing our clients in all dealings with the IRS including responding to all IRS communications.
  • Even if you haven't filed your taxes for a number of years, we can help get you back on track in restoring your financial security.
  • In most cases, we are able to settle outstanding taxes, penalties, and accumulated interest for a fraction of the amount due.
  • You can trust in our safe & secure site – all your information is held in the strictest confidence and none is ever sold or shared with third parties.
  • We will always go above and beyond to make your tax resolution process easier.

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Are You Ready to Find Out What
You Should Do and Should Not Do?

Choose one of the 3 FREE contact methods that is easiest for you.

Schedule a Call with Us

Click the calendar button below to view our appointment calendar, and choose a day & time, and we’ll call you then.

We look forward to your free consult!

Call Us Now

Click the phone button below to either "click to call" or direct dial a number to speak with us right now.

We look forward to speaking with you!

9-Secrets You Need to Know

When the IRS is after you, you need to be informed. What you say to the IRS can be used against you.
Get My 9 Secrets email series now. I'll also add you to my newsletter.

Call Us Now!