Are you experiencing a temporary financial hardship that's preventing you from paying your tax debt? If so, you might qualify for a temporary uncollectible status. This status protects you from certain collection actions.
Consider this program if you can answer yes to any of these questions:
- Are you experiencing temporary job loss?
- Are you temporarily disabled?
- Do you expect your financial hardship to end in the coming months?
Call us to learn more about the temporary uncollectible status.
If you're approved for temporary uncollectible status
You can make voluntary payments at any time after you're approved. A department approved payment plan isn't required while you’re on temporary uncollectible status. Your account will continue to accrue interest while in this program.
Once you're approved, you can't add any new debt to your tax account. If you file a new tax return and owe, you must pay the new tax in full by the due date or you'll be removed from this program.
While you're in temporary uncollectible status, we’ll stop collection actions such as bank or wage garnishment. However, we may still do the following:
- Use your state tax refund to pay towards your debt.
- Ask the U.S. Department of Treasury to send us your IRS refund or expected federal payment. We'll apply these to your debt. This excludes payments exempt from offset under federal law, such as Social Security.
- File a lien against your property.
Note: If after you have been granted temporary uncollectible status and your financial situation has improved, action on your part is required. Such action may include:
Failure to act may result in the department taking collection action on your account.