IRS Hardship Status: Getting it to work for you

Corina Cordova was a frugal, stubborn, hardworking woman. She also had a grandson with special needs who lived with her and was her only dependent. Corina lived on a fixed income and was under tremendous pressure from the IRS to pay her back taxes. She contacted us for help. We reviewed her circumstances, discussed her goals, and suggested that she might qualify for non-collectible status, aka, IRS Hardship Status. We proposed a fee to Corina and she balked. She thought she could save some money by dealing with the IRS herself.

She tried her best to negotiate with he IRS, but her efforts to deal with them had not turned out so well. She was floored that she had to  pay $1000 per month under a repayment plan! She definitley could not afford that much.

Eight months after first seeing us, she came back. This was after she went to one of the tax resolution scam companies who wasted her money and time with an Offer in Compromise that wasn’t going to work for her.

The IRS had levied her Social Security and was in the process of levying a bank account she jointly held for her disabled grandson. She was terrified.

Levies are very difficult to release, especially when a payment plan has already been established and then been defaulted on. However, our attorneys were able to document that the savings account was not hers but her grandson’s. Next we documented more allowable expenses and corrected some of Corina’s other mistakes.

She didn’t do herself any favors by trying to deal with the IRS herself. And that scam company didn’t do her any favors either. We had to undo some of the damage. Ultimately, we had the IRS agree that Corina did qualify for IRS Hardship Status and, within a week, we secured a release for the bank account and for her Social Security payments.

It’s been a few years since Corina’s IRS adventure — and now the tax debt has been wiped out through the statute of limitations on collections expiring. Meaning Corina actually wound up paying back nothing to the IRS.

Read testimonials about Parent & Parent LLP here. If you have a tax issue that is overwhelming you, contact us to schedule a free, confidential consultation. 888-727-8796 or info@irsmedic.com.