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Tax Debt Pros

Currently Not Collectible Status

currently not collectibleCurrently Not Collectible (CNC) means that a taxpayer has no ability to pay his or her tax debt. When the taxpayer demonstrates they are in a severe financial hardship and have no ability to make monthly payments or liquidate assets in order to pay their back taxes, the IRS can declare the account "currently not collectible."  In order for the IRS to consider placing your account in CNC status, the IRS agent will have to review detailed financial forms and substantiating documentation submitted by the taxpayer.

When the IRS agrees to consider your debt Currently Not Collectible this means that they will halt all attempts to collect a tax debt for a time, but it does not mean they've forgiven the debt. The penalties and interest associated with your tax debt will continue to add up during this time period. The IRS will also review your situation periodically and will revoke this status if your situation has changed.

The IRS must send an annual statement to the taxpayer stating the amount of tax still owed. This annual statement is not a bill.  While in CNC status, the 10-year statute of limitations on tax debt collection is still running. If the IRS cannot collect the tax within the 10-year statutory period, then the tax debts will expire.

Do You Qualify for Currently Not Collectible Status?

There are many types of financial issues a taxpayer could experience that may qualify them for the Currently Not Collectible program including:

  • Unemployed or on a fixed income.
  • Sick or seriously ill and unable to work.
  • Unable to meet all of their current necessary monthly expenses.
  • Has little to no assets or equity that could serve as repayment of the tax debt.

Resolving Your Tax Problems

The experts at Tax Debt Pros can review the evidence and determine whether or not you can qualify for this status. We'll use IRS guidelines to accurately calculate your gross monthly income, allowable monthly expenses and assets and compare these figures with your back-tax liability. If we establish that you are a good candidate for this status we'll help you compile the necessary financial documentation and tax forms needed to pursue this avenue with the IRS.

When you consult with a South Jordan, UT tax accountant like Tax Debt Pros our goal is to find a long-term solution to your tax problems. Call us at 801-878-0363 today to learn more about how we can help you find the right tax relief solution.

Currently Not Collectible Frequently Asked Questions (FAQs)>>