In your letter, provide a simple worksheet showing monthly take-home pay and necessary living expenses. The reader should be able to see that you have nothing left after paying bills. Often, the IRS asks for a financial statement before it formalizes uncollectible status. The statement is provided on Form 433-A. We have a copy in the Forms Kit and Resource Guide. Tax Amnesty walks you through the entire process of negotiating uncollectible status.
Uncollectible status is a temporary fix.
It allows you to get back on your feet without the pressure of enforced collection. Furthermore, it puts you into position to use one or more of the amnesty programs. Immediately contact the Taxpayer Advocate. Write a letter giving the name and address of the person levied, i.e., your bank or employer, and explain that the levy is causing serious economic hardship. Explain that you are not able to pay living expenses if the levy is not lifted.