You can appeal a denial within 30 days by requesting an appeal of a transaction offer, form 13711/PDF. You may be eligible to have certain penalties removed or reduced if you acted with reasonable cause and in good faith. Contact the IRS right away to resolve your tax liability and request a tax exemption. The IRS can also release a lien if it determines that the lien is causing immediate economic hardship.
If the IRS rejects your request to release the tax, you can appeal this decision. You can appeal before or after the IRS imposes a lien on your salary, bank account, or other assets. Once the tax revenues have been sent to the IRS, you can file a claim to have them returned. You can also appeal the IRS's denial of your request to return the seized assets.
For a full explanation of your appeal rights, see Publication 1660, Collection Appeal Rights (PDF). If you request a collective audit, the length of time the request is pending delays or suspends the initial ten-year collection period. An internal auditing request is usually pending until an internal evaluation request can be reviewed and established, or until the request is withdrawn or rejected. If the requested AI is rejected, the collection period is suspended for 30 days.
Likewise, if you fail to meet your IA payments and the IRS proposes to cancel the IA, the collection period is suspended for 30 days. Finally, if you exercise your right to appeal a denial or a rescission of the IA decision, the collection period will be suspended from the time the appeal is pending until the date the appealed decision becomes final. You may think you qualify for a difficult economic situation; however, the IRS may view your financial situation differently. After you submit your budget, if it is rejected, the IRS will give you an opportunity to make adjustments.
If you are unable to adjust your budget to meet the standards established to obtain the status of a person with economic difficulties and you have no way to pay your tax debt, you should consider contacting a tax relief specialist. Because your financial situation directly affects your eligibility to receive hardship status from the IRS, if your income decreases due to any of the following circumstances, this could affect your ability to receive hardship status from the IRS. The IRS will conduct a financial assessment requiring you to disclose your monthly income and living expenses, as well as the value of your assets and liabilities. If you have a C corporation, an S corporation, or a partnership and you think you qualify for economic hardship status from the IRS, you can apply by completing Form 433B.
If you are an individual taxpayer and you think you qualify for the status of person with financial difficulties from the IRS, you can apply by completing Forms 433A or 433F. If you owe back taxes and are unable to pay them because of your current economic situation, you may be eligible for economic hardship status from the IRS, technically known as a currently non-taxable state. It can be a legitimate option if you can't pay all of your tax obligations or if doing so causes you financial difficulties. As long as you have difficulties with the IRS, you will be protected from IRS collection methods, such as seizing property, seizing your paycheck, or collecting money directly from your bank account.
We will gather your financial statements along with the documentary evidence necessary to demonstrate to the IRS a case of financial or personal hardship. Before you apply for financial status from the IRS, you should consider submitting an offer of transaction, also known as an agreement.
