If the IRS determines that you cannot pay any of your tax debt, the IRS may temporarily delay collection, by issuing a hardship deferment, until your financial condition improves.

The taxpayer is asking to pay nothing to the IRS for back taxes at the current time and for the IRS to cease any further collection efforts during the taxpayer’s financial hardship.

If the IRS does agree to such a hardship deferment, your debt will increase because interest and penalties will be charged until you pay the debt in full or until the statute of limitations for collection expires.

During such a delay, the IRS will continue to review periodically your ability to pay through requests for financial statements.