Currently Not Collectible Status
If you are struggling to make ends meet due to IRS liabilities, you may be wondering if there is any way to get out of paying your taxes. The good news is that you may be able to qualify for currently not collectible status. This means that the IRS will stop trying to collect the money that you owe and will instead put it on hold.
You can reduce the IRS’s collection efforts if you have CNC status at this time. To see whether you’re qualified for this sort of tax liability relief, contact Damiens Law Firm, PLLC right now. Our tax attorneys can work with the IRS to ensure that you are granted the time you need to rebuild your financial stability if paying.
Attorney Joseph Damiens is on your side. Contact us at (601) 957-9672 today to arrange a free consultation.
Who qualifies for currently not collectible status?
Are you having trouble paying for routine living expenses? Currently, not collectible status applies to individuals who would be confronted with a financial catastrophe if the IRS required payment of a tax liability. You must complete an in-depth financial examination in order to have your tax liability assigned CNC status. The IRS will examine your financial circumstances and determine whether you are unable to pay your taxes without creating undue hardship.
If you are approved for CNC status, the IRS will stop trying to collect your liability for a period of time. This will give you a chance to get back on your feet and improve your financial situation. The IRS may require that you provide updated financial information periodically, and they may eventually resume their collection efforts.
If you are struggling to pay your IRS liability, contact Damiens Law Firm, PLLC today. We can help you explore your options and find the best solution for your situation. Call us at (601) 957-9672 to schedule a free consultation with our experienced tax attorneys.
According to the IRS, standard living expenses include:
- Food, clothing, and additional household costs
- Housing and utility costs
- Out-of-pocket healthcare costs
- Transportation costs
- Any money spent on non-essential goods is likely to be regarded as disposable income, which can be used to pay back your taxes. The exception to this rule is if you can show that the expenditures are genuinely required for your and your family’s health and well-being.
Do so with Damiens Law Firm, PLLC if you are seeking currently not collectible status in Jackson or the surrounding areas. Our tax lawyer in Mississippi can assist you to understand whether you qualify for CNC status and ensure that your paperwork accurately reflects your financial hardship.
What is IRS currently not collectible status?
Imagine a life without tax liability. It may seem like a pipe dream, but it is possible – and IRS currently not collectible status can help make it happen. This designation essentially means that the IRS has determined that you are unable to pay your tax liability, and as a result, they will not take any collection action against you for a period of time. This can provide invaluable relief for taxpayers who are struggling to make ends meet. And, while it is not a permanent solution, it can give you the breathing room you need to get back on your feet and start fresh.
If you are currently struggling to pay your tax liability, reach out to a tax professional to see if currently not collectible status is an option for you. It just might be the fresh start you need.
What happens to the account when it is in currently not collectible status?
When an account is currently not collectible, it means that the taxpayer cannot pay their tax liability at this time. This can happen for a variety of reasons, including financial hardship or unemployment. While the IRS may still attempt to collect the liability, they will typically put the account on hold until the taxpayer’s financial situation improves. In some cases, the liability may be forgiven entirely if the taxpayer is unable to pay. However, currently not collectible status is not a long-term solution, and taxpayers should take steps to resolve their tax liability as soon as possible.
How do you qualify for currently not collectible status?
Currently not collectible status is a designation set by the IRS indicating that an individual’s tax liability is too high for them to pay in their current financial situation. To qualify for currently not collectible status, taxpayers must first prove that they are unable to pay their tax liability. This can be done by providing evidence of income, expenses, and assets. Once it has been determined that the taxpayer cannot pay their liability, the IRS will typically agree to temporarily suspend collection action.
However, it is important to note that currently not collectible status is only temporary and taxpayers will eventually be required to pay their liability in full. In addition, interest and penalties will continue to accrue on the unpaid balance. For these reasons, currently not collectible status should only be used as a last resort for those who are truly struggling to pay their taxes.
What does non-collectible status mean?
Many people are surprised to learn that the IRS has a “non-collectible” status for taxpayers who owe money but currently cannot pay. This status is reserved for those who can demonstrate that they are unable to pay their tax liability, based on their current income and expenses. While non-collectible status does not erase the liability, it does mean that the IRS cannot currently collect on the liability. This can provide some much-needed relief for taxpayers who are struggling to make ends meet. Non-collectible status is not a permanent solution, but it can give taxpayers some time to get back on their feet. For those who are struggling with tax liability, non-collectible status may be worth exploring.