Helping Clients Find Solutions to Complicated Tax Issues
Did you know that obtaining currently not collectible (CNC) status is one way to protect yourself from IRS collection actions? Damiens Law Firm, PLLC is here to walk you through the process of determining if you are eligible for this form of tax debt relief, so please reach out today if you can’t afford to pay your taxes and need extra time to avoid economic hardship and regain financial stability.
Eligibility for currently not collectible status
If you are struggling to afford basic living expenses and would find yourself in a financial crisis if the IRS required you to repay your tax debt, then you might be eligible for CNC status. In order to obtain this status, you must go through a thorough financial review in which the IRS evaluates your financial circumstances to determine the extent of the hardship and whether you can afford to pay any amount toward your tax debt. However, taxpayers must be suffering “significant hardship” beyond economic or personal inconvenience that prevents them from covering the cost of standard living expenses to be granted CNC status.
Standard living expenses that are recognized by the IRS include:
- Food, clothing, and additional household costs
- Out-of-pocket healthcare expenses
- Transportation costs
- Housing and utility costs
Any income that the taxpayer spends on items outside of these categories is generally considered disposable income that can go towards the tax debt. If the taxpayer can prove the other expenses are legitimately necessary for the health and well-being of themselves and their family, then they can be exempt from this rule.
We are here to guide you & protect your rights
Qualifying for currently not collectible status can be a complicated and frustrating process, which is why you should get in touch with our reliable and skilled tax lawyer in Memphis so we can review your situation and handle all of the paperwork to ensure your financial hardship is accurately conveyed to the IRS.