Many Texas residents may hesitate from filing their taxes because they are unable to pay their taxes and meet their living expenses at the same time. What most people may not be aware of is that the Internal Revenue Service has various programs that can help taxpayers find a way to defer making payments on their taxes. When facing an overwhelming tax bill, rather than run away from it, it might be beneficial to get more information about IRS Tax Law.

The IRS can place a taxpayer’s account in “Currently Not Collectible” status. This means the person can defer making payments on past due income taxes. If the taxpayer can demonstrate that they have little to no money left over after making utility payments and paying for rent and groceries, they may be eligible for the deferment. For people who have been struggling to make ends meet, this option can be beneficial because the IRS will not levy bank accounts, garnish wages or request a payment installment agreement.

The Currently Not Collectible status gives individuals much needed breathing room to get back on their feet without the threat of the IRS at their backs. This doesn’t mean that the debt goes away; it still exists and the balance will accumulate due to penalties and interest. Refunds will not be handed out and creditors will likely be informed that a debt is owed to the IRS.

If someone makes less than $84,000 annually, is unemployed or the only source of income is from unemployment benefits or welfare benefits, selecting this option might be the best way to proceed. While it is important to know whether a person qualifies for this status or not, it is also important to know how long the status will last.