The Situation
Gloria, a senior living primarily on Social Security, faced a $38,900 federal tax balance after a limited fixed income and rising housing costs. Available cash was needed for ordinary, necessary living costs, making even a small collection payment difficult at the time.
The Resolution Strategy
The team organized benefit statements, rent, prescriptions, and bank balances and evaluated whether paying the IRS would prevent the taxpayer from meeting reasonable, basic living expenses. The request focused on Currently Not Collectible hardship treatment and disclosed all income and assets. Collection may resume later; the $38,900 debt remains owed.
The Outcome
The outcome is that the IRS records the account as Currently Not Collectible and temporarily suspends most collection actions while hardship persists. The $38,900 balance is not forgiven, and interest and penalties can continue. Collection can restart after financial circumstances change.
Names have been changed and photos are representative stock images used to protect client privacy. This case describes an individual situation. Eligibility and outcomes depend on each taxpayer's circumstances, are not typical or guaranteed, and past results do not predict future outcomes.
