Hardship Waiver

Hardship Waiver

A hardship waiver is a provision that allows individuals or entities to obtain relief from certain obligations or requirements due to extenuating circumstances that create significant financial or personal hardship. In the context of taxation, a hardship waiver may permit taxpayers to defer payment or seek relief from penalties associated with late tax payments or compliance issues.

For example, a taxpayer facing sudden medical expenses or loss of employment might qualify for a hardship waiver from the Internal Revenue Service (IRS), allowing them to avoid penalties for failing to meet tax obligations on time. The eligibility for such waivers typically requires documentation of the hardship and may involve a formal application process.