If you owe back taxes and penalties, the IRS will use any collection tactic at their disposal to get their money and will not let up until the debt has been paid or a payment plan has been arranged. However, if you truly cannot afford to pay your tax debt and doing so would contribute to your economic hardship, you can apply for Currently Not Collectible Status. This special temporary status does not forgive the debt but protects you while dealing with major financial difficulties from potentially devastating collection methods like wage garnishment and levies. The tax professionals at BAYSHORE CPA’S, P.A. located in Mooresville, NC will evaluate your situation and determine if you qualify for Currently Not Collectible Status. When the IRS agrees to consider your debt Currently Not Collectible, they won’t attempt to collect their money during this time period, but the penalties and interest resulting from your tax debt will continue to grow.
How Currently Not Collectible Status Works
In order to obtain Currently Not Collectible Status, the IRS must be convinced that you are experiencing financial hardship. They will review your household income against your monthly living expenses like rent, utilities, medical bills, and other essential expenses. If they find you don’t have any money left to pay off your tax debt after your monthly bills are paid, they will mark your account as uncollectible. They will periodically go back and review your situation, and if your circumstances have changed, they will revoke this status and start collection procedures.
Do You Qualify for Currently Not Collectible Status from the IRS?
You could experience many types of financial issues that may qualify you for Currently Not Collectible Status including:
- Unemployment
- Living on a fixed income
- Suffering from an illness that makes you unable to work
Obtaining Currently Not Collectible Status is something you should not negotiate with the IRS on your own. The tax professionals at Bayshore CPA’s can review the evidence and determine whether or not you qualify for this status.
Put an End to Your Tax Problems
At Bayshore CPA’s, P.A., your peace of mind is our motivation. To see if you qualify for Currently Not Collectible Status:
Call our office now located in Mooresville, NC at 704-660-9317 to schedule a consultation