Have a Tax Question? Ask a Tax Expert
Hello, I'm Robin. Welcome to JustAnswer. I'm reviewing your question now and typing up my reply. I'll post that in just a few moments.
If you are in no position to pay your living expenses and the tax debt then you may be placed in Currently Not Collectible status.
If the IRS agrees that you can’t both pay your taxes and your reasonable living expenses, it may place your account in Currently Not Collectible (CNC) (hardship) status.
While your account is in CNC status, the IRS will not generally engage in collection activity (for example, it won’t levy on your assets and income). However, the IRS will still charge interest and penalties to your account, and may keep your refunds and apply them to your debt.
You can call the number on the last statement you received and speak to an agent.
They could accept an offer in compromise (settle). The amount would be based on what they think you could pay in the future.
If the amount offered represents the most they can expect to collect within a reasonable period of time then they will accept it.
You can use the Offer in Compromise Pre-Qualifier to confirm your eligibility and prepare a preliminary proposal.
Submit your offer
I hope this has been helpful