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What is the Currently Not Collectible Status

 

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What is the Currently Not Collectible Status?

Currently Not Collectible is a status that the IRS can place a taxpayer in, if the taxpayer can prove they cannot pay their taxes due to their current financial situation.

Is Currently Non-Collectible Status Right for Me?

Unlike the other Fresh Start Initiative programs, Currently Not Collectible is a status and not a resolution option.

While this status, on its own, does not remove tax debt, it does stop collection actions.  These collection actions include bank levies, wage garnishments, tax liens, and threatening letters from the IRS.

Currently Not Collectible status does allow a taxpayer to seek and devise a tax relief strategy in peace, without the IRS down their neck.  This is not a permanent solution, so you must take appropriate action to sustain this status long-term.

How Can You Qualify for Currently Not Collectible Status?

To qualify for the Currently Not Collectible status, you must first be in compliance with the IRS.  Compliance with the IRS means tax returns are filed.  If you have any unfiled tax returns, you are not in compliance with the IRS, and you are not qualified for Currently Not-Collectible status If you have outstanding returns, you are not eligible for any other type of IRS Fresh Start Initiative relief program.

If you need assistance with filing your taxes, please contact a Legacy Tax & Resolution Services Certified Tax Resolution Specialist at 800-TAX-SITE (800-829-7483).  Our tax preparers routinely file multiple years of back business and individuals returns.

Once you are filed all required back returns, you must prove you have a significant financial hardship that prevents you from paying the outstanding taxes.

The IRS looks are all of your income, such as wages, interest, dividends, distributions, income, real estate, and other investigations in making its determination.  The IRS will determine your income and compare them against the taxpayer’s maximum allowable expenses for their zip code to determine the level of disposable income to be used to pay outstanding tax liabilities.

If you make a strong case, the IRS must place you into a Currently Not Collectible status and immediately stop all collection actions.

Can I Qualify for Currently Non-Collectible Status On My Own?

Yes, if you do enough research, you can qualify for Currently Non-Collectible on your own.  Still, I strongly advise you to consult with a Certified Tax Resolution Specialist before requesting the status with the IRS.  If you apply and fail, you have given the IRS all of the information to collect from you successfully.

The Currently Not Collectible status is one of the more complicated resolution options to achieve on your own.  It requires a strong case to convence the IRS you cannot pay the IRS anything and why they must stop all collection actions.

Taxpayers who secure the Currently Not Collectible status are more likely to be taken out of the status prematurely due to a poor understanding of the tax code.  Many taxpayers agree to terms in the program that do not serve them long-term.

If a taxpayer is removed from the Currently Not Collectible status, the IRS will aggressively attempt to collect the tax balance in full.  This often results in the IRS taking the same aggressive collection actions, the taxpayer was trying to avoid in the first place.

Legacy Tax & Resolution Services highly recommends that you consult with a Certified Tax Resolution Specialist before attempting to request this status from the IRS.  If  you try to apply for the IRS Fresh Start initiative program on your own, the IRS will try to get you to agree to terms that are most favorable to the IRS.

Why Should I Work with Legacy Tax & Resolution Services to Secure My Currently Non-Collectible Status?

The Certified Tax Resolution Specialists at Legacy Tax & Resolution Services will work with taxpayers to ensure that they remain in the Currently Non-Collectible status for as long as possible.  We help our clients strategize the best course of action if they no longer qualify for the Currently Not Collectible status.

Legacy Tax & Resolution Services is a settlement-focused tax relief company.  Our EAs, CPAs, and Tax Attorneys work with the IRS and get tax relief offers approved every day.  We have an excellent understanding of the IRS Fresh Start Initiative Program, and we will not be tricked  or bullied, by the IRS, into a less-than-optimal resolution option for our client.

Your tax relief team will work diligently to develop a financial hardship case specifically for you and your needs.  We will communicate with the IRS on your behalf.  You never have to speak to the IRS!  We help you maintain compliance throughout the whole resolution process.

Taking on the IRS should not be a one-person crusade.  To successfully reach the best resolution with the IRS, it takes an entire team of professionals.  Legacy Tax & Resolution Services has the dedicated team of  experienced specialists to solve your tax problems once and for all

Our team has a tremendous 98.6% success rate in placing and maintaining our clients in an IRS tax resolution option.  This is just one of the many reasons why we have become the fastest-growing tax relief company in the nation.

Next Steps

If you’re interested in seeing if a Currently Not Collectible status is the best option for you, give us a call at 800-TAX-SITE (800-829-7483)

 

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