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Wallstreet Esq.
Wallstreet Esq., Tax Attorney
Category: Tax
Satisfied Customers: 585
Experience:  10 years experience
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I cannot pay any more money since my small goverment pension

Customer Question

I cannot pay any more money since my small goverment pension can not allow expenses
Submitted: 1 year ago.
Category: Tax
Expert:  Lev replied 1 year ago.
Another option - if because of financial hardship you are not able to pay your tax obligations - you might ask the IRS to assigned currently not collectible (CNC) status to your tax account.If the IRS agrees - that will postpone further collection action, but that will not resolve your underlying tax issue..The Offer in Compromise is possible but it should be viewed as the last resort.People facing financial difficulties may find that there is a tax impact might be eligible for special treatment based on their economical hardship.Treasury Regulation authorizes the IRS to consider OIC s raising these issues. These offers are called Effective Tax Administration (ETA) offers.Most importantly, if you believe you may have trouble paying your tax bill, contact the IRS immediately. In many cases, there are steps we can take to help ease the burden. You also should file a tax return even if you are unable to pay so you can avoid additional penalties.Low Income Taxpayer Clinics (LITCs) represent low income taxpayers before the Internal Revenue Service, assist taxpayers in audits, appeals and collection disputes, and can help taxpayers respond to IRS notices and to correct account problems. If you are a low income taxpayer who cannot afford professional tax assistance and need help understanding your taxpayer rights and responsibilities, you may qualify for help from an LITC that provides assistance for free or for a nominal charge.The LITCs are generally operated by nonprofit organizations or academic institutions.Factors that support an economic hardship determination may include:-- The taxpayer is incapable of earning a living because of a long term illness, medical condition or disability, and it is reasonably foreseeable that the financial resources will be exhausted providing for care and support during the course of the condition.-- The taxpayer may have a set monthly income and no other means of support and the income is exhausted each month in providing for the care of dependents.-- The taxpayer has assets, but is unable to borrow against the equity in those assets, and liquidation to pay the outstanding tax liabilitie(s) would render the taxpayer unable to meet basic living expenses.Based on your information you might be eligible for the hardship status.and I suggest to consult with the Taxpayer Advocate Service (TAS) is your at _1_877_777_4778_ to verify specific location.See here for additional information again for your situation.Let me know if you need any help.