"Status 53" means a taxpayer is "Currently Not Collectible." Taxpayers must file a Form 53 with the IRS to be placed in this status. If approved, the IRS will release any levies they may have on your salary and wages. They won't collect any taxes from you as long as you're designated "status 53."
Filing for Status 53, however, is only a temporary measure. The IRS will give you several months to get your money in order, but they will not delay collection for several years. Your tax debt remains and thus, you have to remit these monies at some point in time. Once your Status 53 expires, the IRS will expect you to begin paying off your debt.
Taxpayers have the burden of showing that tax collection would cause undue financial stress to be granted "status 53." They need to file the Form 53, as well as copies of financial statements, an accounting of the taxpayer's expenses. The IRS will work with you, but they won't grant "status 53" unless you're able to provide tangible evidence that you're not able to pay taxes at the time you file the Form 53.
This is not something that they're just going to take your word on so make sure that all of the supporting documentation and paperwork is on hand if you want to be approved. Beyond filing Form 53, it is also necessary to complete and file Form 433-A.
This will provide the IRS will the information they need, including you and your family's assets, monthly expenses, debt, and wages. After the IRS receives the information they need, they will review the forms and contact you with their decision.
After having approved your request, you will be given a time frame for getting everything in place. If you believe that you're qualified for Status 53, complete the necessary forms, go over the Tax Code, and reach out to a tax professional whenever you feel overwhelmed.
Filing for Status 53, however, is only a temporary measure. The IRS will give you several months to get your money in order, but they will not delay collection for several years. Your tax debt remains and thus, you have to remit these monies at some point in time. Once your Status 53 expires, the IRS will expect you to begin paying off your debt.
Taxpayers have the burden of showing that tax collection would cause undue financial stress to be granted "status 53." They need to file the Form 53, as well as copies of financial statements, an accounting of the taxpayer's expenses. The IRS will work with you, but they won't grant "status 53" unless you're able to provide tangible evidence that you're not able to pay taxes at the time you file the Form 53.
This is not something that they're just going to take your word on so make sure that all of the supporting documentation and paperwork is on hand if you want to be approved. Beyond filing Form 53, it is also necessary to complete and file Form 433-A.
This will provide the IRS will the information they need, including you and your family's assets, monthly expenses, debt, and wages. After the IRS receives the information they need, they will review the forms and contact you with their decision.
After having approved your request, you will be given a time frame for getting everything in place. If you believe that you're qualified for Status 53, complete the necessary forms, go over the Tax Code, and reach out to a tax professional whenever you feel overwhelmed.
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