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 approved for currently not
collectible status, then the IRS must not only cease its collection efforts but
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 at 1–855–605–1500.
What is Currently Not Collectible Status?
If the IRS agrees you can’t both pay your
back taxes and cover your reasonable living expenses, it may place your account
in Currently Not Collectible status. It’s 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 10 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 at 1–855–605–1500.
Categories