What Qualifies as Economic Hardship

Economic hardship status can provide temporary relief from IRS collection activities when paying tax debt would prevent you from meeting basic living expenses.

Definition of Economic Hardship

The IRS considers you to be experiencing economic hardship if paying your tax liability would prevent you from meeting basic, reasonable living expenses.

Qualification Criteria

Income Requirements

Monthly income barely covers necessary living expenses
No disposable income after basic needs
Income below federal poverty guidelines may qualify

Expense Categories

Housing and utilities
Food and clothing
Transportation
Medical expenses
Court-ordered payments

How to Apply

To request economic hardship status, you'll need to complete Form 433-A or 433-F and provide detailed financial documentation supporting your hardship claim.

Benefits of Hardship Status

Temporary suspension of collection activities
Protection from levies and garnishments
Time to improve financial situation
Reduced stress and pressure