Free help from licensed tax pros. Not the IRS.Licensed tax pros in all 50 statesEspañol

Sick and can't pay taxes?

Illness can matter to penalties and collection.

Woman in a soft sweater sitting by a window with a mug, a cane leaning on the chair, calm
Updated October 8, 20264 sourcesFact checked
The short answer

What should I do about tax debt during a medical hardship?

A serious illness can be a reasonable cause to remove late filing or late payment penalties. If you can't cover basic living costs, the IRS may pause collection or release a levy for hardship.

Death, serious illness or unavoidable absence of you or your immediate family can be reasonable cause for penalty relief.Source: IRS: Penalty relief due to reasonable cause

Reasonable cause is decided case by case. You must show you used ordinary care and still couldn't file or pay on time.

The IRS must release a levy if it keeps you from paying basic, reasonable living costs.

If you take a retirement withdrawal before 59 and a half, medical costs over 7.5% of your income may avoid the 10% extra tax.

Key facts

  • Dates of the illness and the missed deadlines
  • Records from doctors or hospitals
  • Your monthly basic living costs
  • Any active levy
  • Any early retirement withdrawals

Options that may help

Penalty relief

Ask for reasonable cause relief by phone or with Form 843.

Levy release for hardship

Call the number on the levy notice right away.

Currently not collectible

A pause in collection while money is too tight.

Results depend on your situation. Not every case qualifies.

Common questions

Is lack of money a reasonable cause?

Not by itself. Other facts that show you tried to comply may help.

Source: IRS: Penalty relief due to reasonable cause

Do penalties stop in CNC status?

No. Penalties and interest keep adding up until you pay in full.

Source: IRS: Temporarily delay the collection process

Sources

  1. IRS: Penalty relief due to reasonable cause
  2. IRS: How do I get a levy released?
  3. IRS: Temporarily delay the collection process
  4. IRS: Topic 558, Additional tax on early distributions

General information, not tax or legal advice. You can contact the IRS yourself for free at irs.gov.

Run the numbers with our free tax tools, like the penalty and payment plan math.

See your options

A few questions. A tax pro calls you back.

Free tools: penalty calculator, 10 year clock, IRS offer data

Free to use. Not the IRS or any government agency. Results depend on your situation. Not every case qualifies.