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Stop IRS Collections: Hardship Relief Services in Minnesota

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If the IRS is sending you escalating notices and you genuinely can’t afford to pay up, the worst thing you can do is nothing. Ignoring the problem won’t make it go away – it will only get worse. Reaching out to a professional gives you options that you may not have realized were available, including hardship relief.

Currently Not Collectible (CNC) status immediately stops IRS collection. Once the IRS labels your account as “CNC”, that means no wage garnishments, no bank levies, and no aggressive activities while you get back on your feet.

BestTaxPro™ can help you assess your eligibility and secure relief. Our founder, Joshua A. Webskowski, is an Enrolled Agent, NTPI Fellow. For over a decade, he has been strategically securing tax relief for taxpayers and businesses in Minnesota and nationwide. Contact us today to learn how we can help you.

You’re in the Right Place If You Can’t Afford to Pay the IRS

If you have tax debt that you can’t afford to pay and need the collections to stop, you are in the right place. We may be able to help you secure the Currently Not Collectible (CNC) Status if:
  • You owe more tax debt than you can afford to pay back, whether that’s from one difficult year or several years of unresolved debt.
  • The IRS’s expected monthly payments are not affordable based on how much you actually earn and what your expenses look like.
  • You’re self-employed or run a business where the cash flow is inconsistent, and a payment plan would push you under.

In these situations, you need collections to stop now, rather than facing a new financial obligation that makes your situation worse than it is. That’s exactly what CNC status provides to qualifying taxpayers.

How the IRS Hardship Program Can Help You

You may have heard of the IRS hardship program, which usually refers to the Currently Not Collectible (CNC) status. It’s an IRS determination, meaning that based on your current financial situation, you can’t feasibly pay the tax you owe without it causing you financial hardship.

When the IRS places CNC status on your account, it temporarily suspends any collection activities. That means that wage garnishments stop, bank levies stop, and the IRS steps back from active enforcement. It gives you the opportunity to breathe and get your finances in order. For some taxpayers, it can provide permanent relief.

CNC status does not erase your tax debt completely. While your account is in this status, you continue to accrue interest on your balance. The IRS will review your status, and if your financial situation improves, they’ll require you to start making payments. Generally, the agency does this by monitoring the income you report on your returns to see if it gets over a certain level.

However, if your account is still in this status on the Collection Statute Expiration Date (CSED), the legal deadline for the IRS to collect the tax debt, the IRS will waive the rest of the balance due. When you talk with us, we’ll let you know if this looks like a strong possibility in your case.

Who Can IRS Hardship Services Help?

The Currently Not Collectible (CNC) status is designed to help people who cannot reasonably afford to repay their tax debt. It can help you if you fall into the following categories:
  • Limited or fixed income. If your income is low or you have no way to increase it, and you’re saddled with high tax debt, the CNC status may be an option.
  • Self-employed taxpayers with inconsistent income. When you’re self-employed or own a business, your income can fluctuate, making it hard to keep up with hefty, regular payments.
  • Struggling businesses. If your business is struggling to meet operational costs or payroll, adding another payment into the equation can be devastating.
  • Those facing IRS actions. When you’re facing imminent enforcement actions, exploring options like the CNC status is a smart strategy.
  • Those with close debt expiration dates. If the Collection Statute Expiration Date (CSED) is close, the CNC status may help you wait out the timeline if you qualify.

The bottom line is that the CNC status may be a viable option for any taxpayer facing debt they can’t afford to pay.

How IRS Problems Escalate Without Action

Many taxpayers presume the IRS will eventually slow down or find a way to work with them automatically. However, that is not the case. The longer you ignore the problem, the harsher the consequences may be.

Penalties and interest continue to grow for as long as you leave the tax debt unresolved. Federal tax liens will attach to your property and show up in public records. That can affect your credit and make it difficult to buy or sell your assets. IRS notices will become more urgent: you’ll likely see CP503, CP504, LT11, and other notices, and each one will bring you closer to enforcement actions.

When the IRS moves from notices to action, things tend to escalate faster than most people expect. The IRS can and does take action within 30 days of sending the Final Levy notice. At that point, wage garnishments can cut your take-home pay, or a bank levy can freeze your account with no additional warning.

These activities create genuine financial pressure on both individuals and businesses. Doing nothing can also mean you lose the opportunity to use real strategic tax debt resolutions. If you’re experiencing hardship, protect yourself by being proactive.

How BestTaxPro™ Secures the CNC Status

Gaining the CNC status is not necessarily as simple as filling out a form. The IRS will need to evaluate your complete financial picture before granting this status. How you present your situation could be the difference between getting rejected and having the application approved.

Take a look at our process to learn how we can help:

Consultation. Taxes are confusing, but a consultation gives you the chance to tell us about your situation. Then, we’ll let you know how we can help. If you decide it’s the right fit, we’ll move forward.

Case Evaluation. We will then conduct a full financial analysis covering your income, expenses, and assets to determine what IRS financial hardship relief is available. We’ll also assess your basic eligibility – for example, if you have unfiled returns, we may need to file them before applying.

IRS Representation. We’ll obtain authorization to represent you before the IRS directly, so that you don’t have to deal with the agency. From there, if the situation warrants it, we will request an immediate collection hold, giving you protection while we work on your tax debt case. We can also represent you in front of the MN DOR.

Application and Negotiation. We then strategically prepare your application, ensuring to meet the IRS’s documentation requirements, and we’ll negotiate for you when the numbers alone don’t tell the full story. We will also monitor the account and adjust the strategy, should your financial situation change in the meantime.

Resolution. The goal is relief, but not just for today, for tomorrow as well. Once you’re on CNC status, we’ll ensure you understand any additional long-term compliance requirements.

We don’t do ‘one size fits all’. Our IRS representation is built around your specific numbers and circumstances. We understand that everyone’s financial situation is unique, and our team creates a tailored strategy that best protects you and your financial assets.

Alternative IRS Hardship Relief Options

While the CNC status is the main IRS hardship solution, it may not be right for every taxpayer or business. Depending on your financial and tax situation, there may be alternative IRS hardship relief options that can either be an alternative or work alongside the CNC status, including:
  • Installment agreements. If you can afford to make some debt payments, either an installment agreement or a Partial Payment Installment Agreement may be appropriate.
  • Offer in Compromise (OIC). An OIC allows you to settle the total sum of your tax debt for less than you owe. However, you will have to meet strict IRS criteria.
  • Penalty abatement. If the IRS has imposed penalties for circumstances beyond your control, you may be eligible to reduce your total balance.
  • Innocent spouse relief. If you’re facing liability for a tax debt due to your spouse, ex-spouse, or late spouse, and you meet key application criteria.

Why Choose BestTaxPro™

Joshua Webskowski holds some of the most distinguished credentials available in the tax resolution field. As an Enrolled Agent, he carries federal authorization to represent taxpayers before the IRS, and as a USTCP, he can represent clients all the way through he Tax Court.

As a National Tax Practice Institute (NTPI) Fellow, he also has advanced resolution expertise that most tax professionals never pursue.

With decades of collective experience, our team handles both individual and business tax problems in Minnesota and beyond. Many of our team members have decades of experience working at the IRS, meaning we know what’s happening on both sides of the table, and we leverage that expertise to get you the best results possible.

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Get Relief From IRS Collections Now

At BestTaxPro™, we evaluate your tax debt situation before determining what the best strategy, or combination of strategies, is for you. With years of experience navigating the IRS hardship programs, we can identify the best route. Contact us today to learn about your tax relief options.

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