If you are having problems with meeting necessary living expenses, Currently Not Collectible Status may be a good option for solving your immediate income tax problems. Let our lawyers help you!
What happens when a taxpayer simply can’t pay his state or IRS tax debt? Short answer: “CNC” or “Currently Not Collectible” status – but, it’s not automatic. You must request it and prove you qualify.
When the IRS determines that it is presently unable to collect taxes from a taxpayer, it will place the taxpayer’s account in a “Currently Not Collectible” or “CNC” status.
This means that the IRS will stop trying to collect the tax to allow you time to get financially stable. And the 10 year collection statute expiration time period continues to run during that CNC status.
Generally, unless the taxpayer’s financial situation changes, the account will remain in CNC status until the collection period expires. If the taxpayer’s financial situation improves the account will be taken off of CNC status and the IRS begins to collect the taxes.
Basically anyone who can prove that he has no or low income and no available or liquid assets to pay the taxes!
Qualification always depends on the circumstances, but for CNC status the big question is: Can the taxpayer pay?
Let one of our income tax attorneys help you get placed in CNC status. To find out whether you qualify, call us confidentially or fill out our confidential contact form which will entitle you to request that someone from our firm contact you to schedule your FREE initial consultation.