Navigating Hardship: Unpacking Tax Relief Options

Episode Summary:

In this episode, tax attorney Juda Gabaie explains how the IRS’s “currently not collectible” status (commonly known as hardship status) works. From qualifying criteria and strategic documentation to pitfalls and misconceptions, Juda breaks down the realities of this temporary relief option. He also shares practical insights on statute limitations, lien consequences, and the importance of proper financial analysis when seeking IRS relief.

 

Key Timestamps:

00:00 – Introduction to hardship status and the IRS’s “currently not collectible” designation
01:50 – How interest, penalties, and tax refunds are treated during hardship
02:51 – Common life events that trigger hardship eligibility
04:23 – Juda’s process: financial reviews, POA, IRS compliance
06:09 – What the IRS scrutinizes most in hardship applications
06:26 – Misconceptions about hardship status and what it doesn’t do
09:18 – Why not everyone qualifies for hardship, even if they think they do
10:26 – Documentation errors and other common client pitfalls
13:14 – Expense limits, allowable deductions, and IRS standards
14:31 – Must-haves for building a successful hardship case
16:26 – Long-term considerations: liens, refunds, and expiration of tax debt

 

About the Show:

The Power of Tax Defense Attorneys: Tax Corner with Juda Gabaie features expert tax attorney Juda Gabaie of Gabaie & Associates, LLC. Hosted by Kevin Rosenquist, the show provides actionable insights for individuals and businesses navigating complex tax issues and IRS controversies.