Unable to Pay Your Tax Bill? The IRS May Temporarily Pause Collections

If you're unable to pay your tax bill, the IRS offers a temporary delay of collection as one of several relief options. Here's what you need to know:

What Is a Temporary Delay of Collection?

The IRS may classify your account as "Currently Not Collectible" if it determines that you cannot pay any portion of your tax debt due to financial hardship.

This status pauses collection efforts, such as levies or garnishments, until your financial situation improves.

How to Request a Delay

1.      Contact the IRS using the number on your tax notice.

2.      You may be asked to complete a Collection Information Statement:

a.      Form 433-F (individuals)

b.      Form 433-A (self-employed)

c.       Form 433-B (businesses)

3.      Provide documentation of your financial status, including income, expenses, and assets.

Important Considerations

1.      Interest and penalties continue to accrue during the delay.

2.      The IRS may file a federal tax lien to protect its interest in your assets.

3.      Your "Currently Not Collectible" status is not permanent—the IRS will periodically review your ability to pay.

Other Relief Options

You may also consider:

1.      Installment Agreements: Pay over time.

2.      Offer in Compromise: Settle for less than the full amount.

3.      Appeals: Challenge IRS decisions.

4.      Representation: You have the right to be represented by a tax professional.

Contact BYB for Help with Relief Options

If you need assistance with understanding IRS tax relief options, you can reach out to BYB for help.