Get Temporary Relief from Collections
Each year, countless taxpayers fulfill their tax obligations by filing and paying, yet a significant number—around 4 to 5 million individuals—discover they owe money but lack the means to settle their bills. While many can collaborate with tax solution firms and the IRS to devise payment arrangements, this still leaves millions unable to meet their tax obligations.
If you’re eager to settle your tax debt but presently lack the financial means to do so, you have the option to petition the IRS for Currently Not Collectible (CNC) status.
Question?
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A Common Scenario
When a taxpayer lags behind in filing tax returns or remitting tax payments to the IRS, the agency initiates its customary collection procedure, which may entail contacting the taxpayer, attempting personal visits, or, in severe instances, implementing income garnishment or seizing bank accounts.
However, if the taxpayer can demonstrate that settling their outstanding debt would result in excessive financial hardship, they may be eligible for Currently Not Collectible (CNC) status. This designation halts the IRS from pursuing collection efforts for the amount owed.
Obtaining Currently Not Collectible Status
Obtaining Currently Not Collectible (CNC) status can present challenges. You must effectively persuade the IRS that paying your tax debt would impose a substantial and detrimental effect on your overall well-being. This necessitates comprehensive documentation of all your assets and income sources. Should the IRS uncover any undisclosed nest eggs or substantial income streams, obtaining CNC status may prove unfeasible, and exploring a payment plan could be a more suitable alternative.
What’s Next?
It is crucial to be aware that Currently Not Collectible (CNC) status is not a permanent arrangement. In the event of an improvement in your financial situation, the IRS will resume its collection efforts to recover the outstanding debt. Although CNC status provides a deferment of collections, it is important to note that interest and penalties will continue to accumulate.
The IRS will regularly evaluate your status through check-ins and review of your tax filings to determine if you still qualify for CNC status. If you are able to maintain CNC status for a full 10-year period, it is likely that the IRS will consider the debt as uncollectible and potentially write it off.
Choose Emerald Gain for Tax Assistance
When you find yourself in debt to the IRS, Emerald Gain is your trusted partner. With an impeccable A+ rating from the Better Business Bureau and authorized business operations across all fifty states, we offer reliable and confident assistance. Our team of skilled tax professionals possesses extensive experience in resolving various tax issues and adeptly navigating interactions with the IRS on behalf of our clients.
