hardship relief program

The IRS Hardship Relief Program—officially known as Currently Not Collectible (CNC) status—offers temporary relief to taxpayers facing genuine financial distress. If paying your tax debt would prevent you from covering essential living expenses like housing, utilities, groceries, or medical care, you may qualify. Approval halts IRS collection actions such as wage garnishments, bank levies, and liens, allowing you breathing room while your financial situation stabilizes. However, penalties and interest on your debt continue to accrue and may grow over time. Eligibility is determined through a thorough review of your income, necessary expenses, assets, and liabilities, typically using IRS financial statement forms. Since CNC status doesn’t erase the debt—and the IRS periodically reassesses eligibility—it’s often best used as a short-term solution while pursuing more permanent options. Professional guidance can help you navigate documentation, apply effectively, and evaluate alternative relief programs.