Currently Not Collectible Status
If you owe the IRS money they will use any means possible to collect the tax debt. If a taxpayer truly doesn't have the ability to pay their taxes they can apply for Currently Not Collectible Status. This special status protects people suffering with an economic hardship from collection strategies like levies and wage garnishments.
When the IRS agrees to consider your debt Currently Not Collectible this means that they will halt all attempts to collect a tax debt for a time, but it does not mean they've forgiven the debt. The penalties and interest associated with your tax debt will continue to mount up during this time period. The IRS will also review your situation periodically and will revoke this status if your circumstances have changed.
How Currently Not Collectible Status Works
In order to obtain Currently Not Collectible Status, the IRS must be convinced that you're experiencing financial hardship. They will review your household income against your monthly living expenses like rent, utilities, medical bills, and other essential expenses. If they find you don't have any money left to pay off your tax debt after your monthly bills are paid, they will mark your account as uncollectible.
They'll periodically go back and review your situation and if your circumstances have changed, they will revoke this status and start collection procedures.
Do You Qualify for Currently Not Collectible Status from the IRS?
There are many types of financial issues a taxpayer could experience that may qualify them for Currently Not Collectible Status including:
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Unemployment
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Living on a fixed income
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Suffering from an illness that makes you unable to work
ENG Accounting & Taxation Srvc Inc. can review the evidence and determine whether or not you qualify for this status. We'll use IRS guidelines to accurately calculate your gross monthly income, allowable monthly expenses and assets and compare these figures with your back-tax liability. If we establish that you are a good candidate for this status, we'll help you compile the necessary financial documentation and tax forms needed to pursue this avenue of tax relief.
Put an End to Your Tax Problems
When you consult with ENG Accounting & Taxation Srvc Inc. our goal is to find a long-term solution to your tax problems. Call us today to learn more about how we can find a suitable tax relief option for you or request your consultation online.