Currently Not Collectible
The currently not collectible status may be your solution to temporarily delay or permanently defer payment of tax debt. This does not mean that the tax debt goes away, yet it may provide you with some immediate tax relief. Yet as the months and years pass by, the IRS obligation to collect the tax debt typically expires in 10-years. There are exception that may extend the expiration time that may allow the tax debt to remain after the 10-years. Currently not collectible means you are not able to pay at this time. Not all taxpayers qualify for such a status. Three examples that may qualify you to meet this status is below:
- Unemployed
- Underemployed
- Financial Hardship
The three categories above do not represent a fully exhausted list of possible reasons to qualify. Yet they are three of the major reasons to qualify.
Collection Information Statement
The collection information statement (Form 433-F, Form 433-A) is a very intrusive form where the IRS collect your financial information including current employment salary/wage, dependent, banking and credit card, household expenses and other personal/business information. They will want to know what you own (assets) and who you owe (liabilities). Again, this form is very intrusive and they want to know what is going on in your financial life.
Know This about Currently Not Collectible Status
The deferred payment does not stop penalties and interest from accruing month to month. When gainfully employed, arrange for necessary payments to start. If there is any significant improvements in your financial ability to pay, make arrangements with the IRS to pay. Doing this keeps the debt from further accumulating. Remember, the penalties and interest do not cease until the debt is paid in full.
To protect their position from other creditors, the IRS will file a Notice of Federal Tax Lien. This lien will make it difficult for you to sell any of your assets without the IRS being first in line to collect on the tax debt. Also, this will have an adverse impact on your credit rating. The IRS will review your ability to pay by requesting you to update your collection information statement in the future. The failure to provide them with this updated information will void/terminate your status and place you back into active collections.
If you find yourself unable to pay your tax debt today, consider this program as your avenue to immediate tax relief.
Pre-determine Eligibility for Currently Not Collectible Status
Answer 17 questions and receive a personalized report that can determine your eligibility to enter into the CNC status. Begin here. Or Contact us today, and we can assist you to find other IRS programs that may be more beneficial to your needs. Act and get the tax relief you need now from aggressive IRS collections.
