What to Do If You Have a “Currently Not Collectible” IRS Status
When taxpayers start looking into the process of resolving an Internal Revenue Service (IRS) tax debt situation, they may find themselves confused by the often complex and sometimes confusing array of codes and options that are involved. One of the most confusing options is perhaps the most powerful tool that you and your tax debt relief advocate have at your disposal, the Currently Not Collectable status. Let’s take a few minutes to quickly talk about what CNC is, who qualifies, and what you can do if you are able to get assessed as currently not collectible.
What is Currently Collectable Status?
To put it in the simplest terms, Currently Not Collectable Status or CNCS, is a form of deferment that is offered by the IRS for some taxpayers who currently are not in the financial position to make payments toward their tax debt without having such payments placed upon them, their families, or their business undue and extreme hardship. CNC status is often applied to a taxpayer for a period of one year and can be extended several times if necessary. It is often used as a way to reduce or eliminate a back tax debt, or at the very least to help the taxpayer prepare for the process of making payments. While the taxpayer is in CNC status, the IRS cannot garnish wages, levy a lien against property or bank accounts, seize assets, or undertake many other types of aggressive collection actions. They may still pursue several other types of action, however, and you are required to stay in compliance with a wide range of rules or your CNC status could be revoked. These rules generally involved not establishing large lines of credit, not purchasing new assets, and not investing in many ways.
Who Can Qualify for CNC Status?
Most people who have a substantial tax debt situation may qualify for CNC status. The process is fairly straightforward and involves a simple declaration of your financial and property assets that will be confirmed and examined by the IRS. There are many rules that apply to what assets can and cannot be counted toward your financial position. For example, retirement savings, children’s college funds, the value of your primary residence, the value of you and your spouses primary means of transportation, amounts that are stored in medical savings and other types of assets cannot be taken into account. To keep it simple, the IRS can look at the value of your vacation home, RV, hunting cabin, boat, expensive (non-inherited) jewelry collection, and other items.
Getting Help with Your Tax Debt Issue is the First Step
At Success Tax Relief, we have been helping taxpayers with their IRS issues for years. We can help you file all of the necessary form and walk you through the process every step of the way. You have the opportunity to consult with accountant and tax attorneys. We will help you get through your tax debt situation as quickly as possible aiming for the best possible outcome. We will help you to determine if you qualify for CNC status. Let us help. Call us today at 1-877-825-1179. You can also use our online contact form to schedule a FREE consultation.