5. If you have low income and few assets, the IRS might give you a temporary pass.
If there’s no way you can afford to pay the IRS, the agency might classify your debt as “currently not collectible.” Achieving that status requires filing any past-due tax returns, providing the agency with information about your finances, and undergoing annual audits to assess whether your financial condition has improved. Although the IRS stops trying to collect the tax debt, it continues to levy interest and penalties on the debt. Again, you may want to consult a tax professional before applying for this status.
(More: Cap on SALT deductions will affect nearly 10.9 million people)
