Currently Not Collectible

Currently Not Collectible

If you owe back taxes due to unfiled income taxes or a delinquent tax debt and your financial resources are compromised, we can get the IRS to leave you alone and stop collection efforts for 18 months if you call us now. If you do not qualify for an Offer in Compromise and you cannot afford an Installment Agreement due to financial hardship, we can have your back tax debt placed in a Currently Not Collectible Status (CNC) by the IRS. If you need help and feel like your financial future is under siege, contact us today.

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The process of having your back tax debt placed on the Currently Not Collectible status involves the handling of precise paperwork and an effective knowledge of IRS rules and regulations. With a trusted history of tax relief experience, we are your most reliable resource for achieving a CNC resolution to your tax crisis.

The decision to place an account in CNC status is usually based upon examination by a Revenue Officer of your up-to-date Collection Information Statement (CIS). In addition, your health and your age are taken into account when the decision is being made. If the Revenue Officer believes collection efforts will be successful in the future, an IRS lien due to the unfiled income taxes or a delinquent tax debt will be filed against you before an account is officially declared Currently Not Collectible.

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Once your account is designated as Currently Not Collectible, all collection activity by the IRS against you stops. However, the statute of limitations on your tax debt will continue to move towards the eventual expiration date. Once CNC status has been granted by the IRS, your financial status has to change significantly in order for the status to be revoked. If your IRS tax account status remains Currently Not Collectible, your tax debt will be cancelled once the statute of limitations expires.

Without question, the IRS expects you to keep your tax status and filings up-to-date when your tax debt is designated as Currently Not Collectible. If your financial situation improves, the Currently Not Collectible status of your tax debt will be revoked. Right away, the IRS will attempt to collect the back taxes owed through either immediate full payment or the setting up of an Installment Agreement.

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We can’t help until you contact us. Click here to fill out our simple
Tax Resolution form

Although the Currently Collectible Status can be a plausible option for both personal income taxes and back payroll tax liabilities, it is not our preferred course of action. Although IRS collection efforts, including bank liens, wage garnishments and asset seizures, cease to be a threat, your financial freedom is frozen in place. If the threat of having to pay the tax debt simply is too extreme, you will be forced to remain in a financially difficult position until the tax debt expires. Still, if you have a negative cash flow and your equity assets are limited to the Federal Standards allowed, the Currently Not Collectible option could be your best chance to resolve your tax debt.

From the IRS perspective, the Currently Not Collectible status is only a temporary designation that means you do not available income at the present time to cover your IRS debt in part or in full. In addition, the IRS examines your assets to see if they can be liquidated to cover your tax debt. If your assets fall within the necessary Federal standards and cannot be liquidated, the IRS will not take further action against you. For CNC status to be given as opposed to asset seizure, the underlying issue for the IRS is if the liquidation of a particular asset would cause further financial hardship. The ultimate result is all collection attempts against you are suspended until you attain the ability to pay your tax debt.

We know the ins and outs of having the IRS designate a beleaguered tax account as Currently Not Collectible. If your tax problem due to unfiled income taxes or a delinquent tax debt has you trapped in a cage with no exit, call us today. Peter Stephan and the Tax Experts at the Tax Resolution Institute can find a workable solution for you.

Free Consultation!
We can’t help until you contact us. Click here to fill out our simple
Tax Resolution form

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