How to Apply for Currently Not Collectible with the IRS
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When the IRS declares an individual “currently not collectible” status (or CNC), the IRS will generally stop all collection activities (i.e., will not issue levies and garnishments).
Once in this status, the 10-year statute of limitations on collecting the tax debt is still running (with certain exceptions). If the individual’s financial situation does not improve in this time, the tax debts owed will expire. Getting declared currently not collectible can help a taxpayer get back to everyday life without worrying about the IRS taking further collection actions that will limit the funds needed for everyday necessities. Realize that in many cases, the IRS will still file a tax lien (if one has not been filed) for any tax years owed.
About Our Service (CNC)
Our tax team will analyze financial documents provided by the client, compare them with IRS maximum National and Local Standards, and then determine if the client qualifies. To qualify for CNC status, it must be shown that collection of the taxes owed would create financial hardship. Once we determine that the client would qualify and the proper supporting documentation is provided, we will negotiate with the IRS to put you into CNC status. Once approved for CNC, collection activity will cease until your financial situation changes (i.e., winning the lottery, finding a new job, etc.).
Why Choose Us to Resolve Your Tax Problems?
We have knowledgeable tax professionals who understand the IRS and State requirements for getting our clients put on this particular status. If there is a better option than CNC or a combination of options, we will find the best balance that fits your unique situation. We will also consider all other options, such as an offer in compromise, penalty abatement, or other options, to see if you can settle your taxes for less. We take pride in being truthful to our clients on the best course of action and helping them understand why specific actions should be taken.