The IRS generally issues refunds within specific times. The IRS generally needs two weeks to process a refund on an electronically filed tax return and up to six weeks for a paper tax return. Consider the difficulties of the IRS if you can't pay your back taxes and you don't qualify to request an agreement with the IRS. You'll still owe back taxes, but the IRS won't pursue you.
You can remain financially distressed by the IRS for the next 10 years. After 10 years, the IRS will eliminate back taxes. If you are unable to pay the new taxes, you can request that the new taxes go into economic difficulties from the IRS, although it will be more difficult to do so if you continue to owe new taxes. The IRS financial hardship program is designed to help taxpayers who would not be able to cover their necessary living expenses if they had to pay their tax bills.
These programs are much easier to qualify for than the IRS program for people with financial difficulties, and they require much less personal information. If you can't pay your tax bill because you only have enough money to survive after supporting your family, you may be eligible for help from the IRS for economic hardship. If they find an increase in their income and believe that it is within your means to pay your taxes, they will remove the CNC status and waive the IRS obligation. Because the IRS program for people with economic difficulties requires the release of very sensitive financial records, some taxpayers get tired of filing an informational statement about collection and instead opt for an online payment agreement.
If possible, it's best to pay the new taxes promptly, as they probably won't affect the difficulties you've had with the IRS over the past few years and will avoid incurring more debt. Every year, under the IRS program for people with economic difficulties, the government will send you an email telling you how much you owe in taxes. In other words, the IRS's economic difficulties are generally not aimed at most large companies, but rather at individual taxpayers and small business owners. The IRS rules on difficult living conditions state that CNC codes can only be used for “individual or joint IMF evaluations, sole proprietorships, partnerships in which a general partner is personally liable, and limited liability companies in which an individual owner is identified as a responsible taxpayer.” Form 433B: Used for type C public limited companies, type S joint-stock companies, and public limited companies that apply for a difficult economic situation with the IRS.
The IRS may be able to expedite your refund. If it is delayed due to a temporary delay in processing, you may receive a letter or notification from the IRS informing you that there is a problem with your tax return or that your refund will be delayed. The IRS will use the information contained in Forms 433A, 433B, or 433F to determine if the account qualifies for tax difficulties. The IRS will likely request documentation about your financial difficulties, such as copies of closing notices, eviction or foreclosure notices, etc.
If you are facing financial difficulties from the IRS, the best thing to do is to hire a professional tax advisor for financial difficulties.