Currently Not Collectible

CurrentlyNotCollectableYour financial position may have reached the point where you cannot even afford to make small monthly payments on your back taxes. The Internal Revenue Service will place your account in Currently Not Collectible (CNC) or hardship status when they determine they are unable to collect the taxes from you by full payment, through an Installment Agreement or by an Offer in Compromise.

Once your account is placed in CNC status, the IRS will stop collection activity and will release any levies and garnishments that have been issued against you. However, interest and penalties continue to accrue and are added to your unpaid taxes during this period.

You can qualify for CNC status by proving to the IRS that after paying all of your reasonable basic living expenses there is no money left over to make payments on your back taxes. In addition, you must not have any equity in assets that you can sell or borrow against to pay your taxes.

Normally, unless your financial situation changes, you will remain in not collectible status until the statute of limitations on collections expires, at which time your tax debt is forgiven. The IRS will periodically monitor your financial situation to determine whether there has been any improvement which allows you to make full or partial payment of your back taxes.

Call us today to learn how we can help you with Currently Not Collectible Status

The tax resolution specialists at East Coast Tax Consulting Group will evaluate your specific situation to determine whether CNC status is the best tax resolution strategy for you. If  CNC or hardship status is not the right fit for you, we’ll find a solution that is. Proudly serving Boca Raton, Florida and elsewhere throughout the U.S. we’re here to help solve your back tax debt. Call for your Free Consultation today!