If you are unable to make your tax payment to the IRS, you should consider writing a letter of hardship requesting some form of relief (delayed or reduced payment).
Below are two sample hardship letters for taxes:
IMPORTANT: DO NOT COPY THIS LETTER EXACTLY. PLEASE USE YOUR OWN WORDS.
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[Date]
Internal Revenue Service
Attn: [Agent name or Collection Compliance unit]
[IRS Location Address]
RE: Application For Hardship Relief
[Your Name & SSN or tax id number]
[Type of Tax & Period(s)]
Dear Sir or Madam:
This letter is in response to your demand notice for payment. I am unable to pay the tax I owe as a result of financial hardship.
During tax period(s) referenced above, [reason(s) for not being able to pay]. I am currently in financially unable to pay what I owe.
Enclosed are the following:
Copy latest IRS notice
Form 433-A
Copy of latest W-4 filed with my employer
Copy last 3 months wage pay stubs
Copy last 3 months bank statements
Copy last 3 months utility bills
Copy latest filed return
[Explain your current financial sitation in more detail but briefly]. My earnings barely meet my living expenses. My assets are minimal and I have very little to no disposable income. With this request, I am hoping to avoid a potential fine.
I realize a tax lien may be filed, but I ask for consideration and plead for a hardship consideration to either extend my due date or allow me to pay in smaller increments over time.
Thank you for your consideration. If you have any questions, please don’t hestiate to contact me at [Your Phone Number].
Sincerely,
[Your Signature]
[Your Name, Address and Phone Number]
[Your SSN]
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And here’s another example …
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{Your Name}
{Your Address}
{Address Continued}
{Your Phone Number}
{Internal Revenue Service}
ATTN: {appropriate department}
{Address}
{Address Continued}
{Date}
To Whom It May Concern:
I am writing to attempt to stop a bank levy that the IRS is ready to impose on my
account(s).
I have experienced a great deal of financial hardship lately, due to {details of the
hardship that have made it impossible for you to pay the taxes due to the
IRS}.
If the IRS continues with this plan to freeze my account(s), I will not be able to
meet the basic standards of living. I have attached my most recent pay stubs
{along with other relevant information} to illustrate the fact that I simply do not
make enough money to be able to afford to have my account(s) frozen.
I am requesting {a payment plan, a settlement negotiation} in lieu of the levy.
Please contact me as soon as possible so that we can work on getting this
resolved.
Sincerely,
{Sender Name}
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