- The taxpayer’s age and employment status;
- Number, age, and health of the taxpayer’s dependents;
- Cost of living in the area where the taxpayer resides;
- Any extraordinary circumstances such as special education expenses, medical hardship, or natural disaster; and
- Whether the taxpayer would suffer an economic loss if forced to move.
Your need for economic hardship status can be backed up by a variety of factors, including a medical condition that prevents you from earning an income, and/or the fact that you are unable to borrow against the value of your assets.
It is crucial to note that your financial circumstances are directly connected to your IRS hardship status, and any one of the following situations might have an effect on your eligibility.
- Job loss
- Unemployment compensation
- Income decline
- Searching for a job
- The employer goes out of business
- Close your own business
- Lose your home through foreclosure
- Sell your home at a loss
If you are unable to meet the standards set for hardship status and have no way to pay your tax bill, you should consider seeking a representative that will advocate for you!