Does the IRS ask for proof of hardship?

If you have an unpaid tax balance and are unable to pay basic living expenses, you may qualify for one of the IRS' hardship payment alternatives. To figure out if you qualify, the IRS will require that you provide detailed financial information by completing a Form 433-F or 433-A, Collection Information Statement.

hrblock.com - Tax Dictionary - Financial Hardship - H&R Block

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IRS Definition

A hardship exists if a taxpayer is unable to pay reasonable basic living expenses.

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The IRS may agree that you have a financial hardship (economic hardship) if you can show that you cannot pay or can barely pay your basic living expenses. For the IRS to determine you are in a hardship situation, the IRS will use its collection financial standards to determine allowable basic living expenses. The IRS has standards for food, clothing and miscellaneous; housing and utilities; transportation and out-of-pocket health care expenses. However, if your expenses exceed these standards and you can prove that the additional amount is necessary for the health and welfare of your family or is necessary to produce income, the IRS will likely accept the additional amount. If you have an unpaid tax balance and are unable to pay basic living expenses, you may qualify for one of the IRS’ hardship payment alternatives. To figure out if you qualify, the IRS will require that you provide detailed financial information by completing a Form 433-F or 433-A, Collection Information Statement. If your financial analysis shows that you are unable to make a monthly payment, there are two alternatives you can consider. If you can make no payment at all at the current time, you may qualify for currently not collectible status which is a temporary status the IRS will place on your account until your situation improves or until the time the IRS has to collect the taxes owed expires (typically 10 years). The IRS will review your account each year to see if your financial situation has improved. You can also consider applying for an offer in compromise. If you qualify, the IRS will settle for a payment that is less than what you actually owe. In reality, very few people qualify. The IRS looks at whether you have the income and assets to pay the balance due before the collection statute expires. If you have the income and assets to do so, you probably do not qualify.

Learn how to address an unpaid tax bill.

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Why is my tax refund so low 2022?

Typically, you get a federal refund when you've overpaid yearly taxes or withheld more than the amount you owe. You may receive a lower refund because there was no stimulus payment in 2022, and there's a less generous tax deduction for charitable gifts, the IRS said.

cnbc.com - Tax 'refunds may be smaller in 2023,' warns IRS. Here's why - CNBC

If you're expecting a tax refund in 2023, it may be smaller than this year's payment, according to the IRS. Typically, you get a federal refund when you've overpaid yearly taxes or withheld more than the amount you owe. Your annual balance is based on taxable income, calculated by subtracting the greater of the standard or itemized deductions from adjusted gross income. "Refunds may be smaller in 2023," the IRS said in a November news release about preparing for the upcoming tax season. "Taxpayers will not receive an additional stimulus payment with a 2023 tax refund because there were no economic impact payments for 2022."

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The agency issued the third round of stimulus payments worth $1,400 per person in 2021, and eligible Americans could claim unpaid funds on their tax return this year. The average refund for the 2022 filing season was $3,176 as of Oct. 28, according to the IRS, up nearly 14% from $2,791 in 2021.