Page 49 - Escape Your IRS Nightmare Flip Book

“I was very much in debt and after a year of payments to the IRS, I knew I would never get them paid on my
own. They helped me tremendously by making my large debt into a much smaller debt that I could afford to pay.
What stood out most about Bryson Law Firm was that everyone I spoke to was very kind and informative. I will
tell my family and friends that the Bryson Law Firm is on top of things and straight up. If y’all can help, y’all
definitely will go out of your way to help.”
Testimonial from client, Dean S.

For some people, even an Offer in Compromise is more than they can afford. If that is the case, you

may consider negotiating with the IRS to prove you are in an economic hardship.

An economic hardship means that you are currently unable to pay your basic living expenses, or all of
your income is used to pay your basic living expenses and you have no monthly disposable income.

I will give you an example:

John makes $2,500 per month.

His monthly expenses are as follows:
Rent and utilities: $1,200
Student loan repayment: $570

Car Payment: $250
Gas, Tag, Title, and Car Insurance: $200

Out of Pocket Health expenses: $50
Current Year Taxes: $400

John’s financial situation is upside down. He also owes back taxes of $50,000. This is an example of a
time where the IRS may place a taxpayer in a hardship status called Currently Not Collectible.

Currently Not Collectible (CNC) status means the IRS has determined you are unable to pay back the
taxes owed to the IRS.

While you are in CNC, the IRS will place you in a collection hold which means they will not take any
collection action against you.

You can continue to stay in CNC so long as your financial situation stays the same. However, beware!
Once you begin making more money, you should also disclose this to the IRS or they will take you out

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