What is Currently Not Collectible status?
Simply stated, being placed on currently not collectible status means that the IRS has agreed to stop attempts to collect back taxes. This happens after the IRS receives evidence that the taxpayer cannot pay the tax debt owed. While being placed on currently not collectible status does not eliminate any tax debt owed to the IRS, nor is an attempt to settle tax debt, currently not collectible is an especially important option for taxpayers who simply cannot afford to pay the IRS back taxes and want a little “breather room” as they figure out their financial affairs.
How do I get placed on Currently Not Collectible status?
To qualify for currently not collectible status, you must show to the IRS that your monthly income is insufficient to pay your necessary living expenses. The IRS may require you to disclose your financial information to substantiate your claim of financial hardship. After the IRS declares a taxpayer currently not collectible, they must stop all collection activities, including garnishments and levies.
While qualifying for currently not collectible status ultimately is determined by calculating your disposable income, the assistance of an experienced tax attorney will benefit you, as we are well experienced on what qualifies as “income” and “necessary living expenses” under the tax law. At Dallo Law Group, we are trained and educated in the complexities of the tax law and can help you get qualified for currently not collectible status!
What are the alternatives to Currently Not Collectible status?
There are several tax debt settlement options that may be available for you. This is one in five strategies to get out of tax debt. Even if currently not collectible status may not be the best option for you, you may still qualify for an Offer in Compromise (OIC,) Installment Agreement, Partial Payment Installment Agreement, or Filing Bankruptcy.
How can Dallo Law Group Help with getting placed on Currently Not Collectible status?
Dallo Law Group practices exclusively in the area of tax controversy and IRS collection matters, including currently not collectible status (CNC) are a significant part of our tax practice. We have the experience, knowledge, and technical know-how to produce the best results for you. Unlike many of the nationwide tax resolution companies who advertise on the television and the radio, our local reputation and your satisfaction are of the highest importance to our firm.
The IRS often attempts to disqualify a taxpayer from currently-non-collectible status (CNC) on the grounds that the taxpayer’s expenses are not necessary or the taxpayer’s income is higher than actually claimed. Because we are expert negotiators and have a thorough understanding of the tax laws and the IRS manuals, Dallo Law Group is aware of what arguments will succeed against the IRS and will best utilize our skills to maximize your chances of being placed on currently not collectible status.