20 Oct The Tax Resolution Alphabet – C is for Currently Not Collectible
C is for the Currently Not Collectible Status from the IRS
Big companies are known for getting all sorts of breaks, but when average people fall behind, they rarely receive help. When you owe back taxes, but can’t afford to pay them, then you may qualify for a special tax status known as currently not collectible.
If you’re IRS approved for currently not collectible status, they must not only cease its collection efforts, but they can no longer garnish your wages or seize your property.
Want to know if you qualify for currently not collectible status? Contact our firm here for a specific evaluation of your situation. Visit our website, sfstaxproblemsolutions.com to book your Free Debt Settlement Analysis at https://go.oncehub.com/jeffreyschneider
What is Currently Not Collectible Status?
If the IRS agrees that you can’t pay your back taxes and cover your reasonable living expenses, they may place your account in the Currently Not Collectible status. This determination is based on your current financial situation.
You can request currently not collectible status by submitting the proper form and proof to the IRS of your income and expenses, as well as whether you can sell any assets you may have or get a loan.
As you’ll need to be able to document your inability to pay, be sure to gather copies of all your bills, your most recent paycheck stubs, and statements detailing other sources of income such as alimony, pensions or investments. If the IRS determines that your necessary expenses exceed your income, then it will notify you of your Currently Not Collectable status.
WARNING: Don’t try to do this alone. We recommend reaching out to our tax resolution firm to guide you through your options. Talking to the IRS directly could be like shooting yourself in the foot. They’ll ask you very invasive questions that could land you in deeper trouble. Remember, the IRS is not your friend. Their job is to collect what they believe you owe them, so it’s best to have a professional in your corner.
Not a Permanent Solution
Keep in mind that currently not collectible status applies only to your back taxes. You will still have to file tax returns, and you will not be exempted from paying current and future taxes. You will also continue to accumulate penalties and interest on your unpaid taxes. After a year or two, the IRS may review your status, and if you’re able to begin paying your back taxes, then you must do so. If you’re still not able to pay, then your status will be renewed.
Statute of Limitations
The IRS can attempt to collect outstanding taxes for only ten years from the date the taxes were assessed against you; usually, that’s the date you filed. If at the end of this 10-year period the IRS hasn’t collected, then the taxes are no longer owed.
In difficult times, many families have trouble meeting their commitments. If you’re worried about the IRS garnishing your wages, levying your bank account, or taking your home, then reaching out to our firm and getting a free, no-obligation, confidential consultation on your tax problem may give you some peace of mind. If you’re not approved for Currently Not Collectible status, our firm will explain the many other tax relief options with you. Contact us now. Visit our website, sfstaxproblemsolutions.com to book your Free Debt Settlement Analysis at https://go.oncehub.com/jeffreyschneider.