Given your daughter's sudden change in income and inability to pay taxes, using IRS Form 433-A might be a good option. Here's a guide:
- Form 433-A Purpose: This form is used to provide the IRS with financial information to determine how an individual can satisfy an outstanding tax liability
- Your daughter can use Form 433-A if she owes income tax and cannot pay it in full. This form is often used when applying for an Offer in Compromise (OIC) or setting up a payment plan
- She will need to provide detailed information about her income, expenses, assets, and liabilities. Given her current zero income, this will help the IRS understand her financial hardship
- Submitting the Form: IRS Form 433-A cannot be submitted through TurboTax. It must be mailed directly to the IRS.
You can download IRS Form 433-A here
For more detailed guidance, you can refer to the IRS website and Wiggam Law.
