The Currently Not Collectible (CNC) program is an IRS program designed to provide relief from collection activities for taxpayers who would encounter undue financial hardship if they had to pay their tax debt. The IRS requires you to provide information relating to your income, expenses and assets.
There are many reasons why taxpayers find themselves with tax problems and on rare occasions it is due to criminal intent. However, the majority of tax problem resolution cases we deal with are caused by some serious event that occurred in the taxpayer’s life.
The IRS has the authority to enter into payment plans with taxpayers who owe back taxes. In a effort to streamline the processing of these agreements the IRS continues to test expanded criteria for taxpayers requesting installment agreements.
In April, the IRS began mailing letters to a small group of taxpayers whose past due tax accounts are being assigned to one of four private debt collection agencies. The program will expand to thousands of other taxpayers later in the spring and summer.
We’ve previously written about a law enacted in December 2015 that authorizes the Secretary of State to deny the issuance or renewal of passports to “seriously delinquent” taxpayers. The purpose of the law is to use travel as a way to enforce tax collections.
If you receive Notice of a Federal Tax Lien under Internal Revenue Code Section 6320, or if you receive Notice of Intent to Levy under Internal Revenue Code Section 6330, you have a serious tax problem on your hands.
You are required to file tax returns. If you do not file a tax return, the Internal Revenue Service could file a substitute return for you. You can be subject to substantial financial penalties and even criminal consequences if you do not file.