Your economic circumstances have taken a turn for the worst. Suddenly, you have insufficient funds to pay for the essentials of daily living, i.e. groceries, utilities, rent, etc. Worst, you still must pay your taxes. Did you know that there is a way to stop IRS from chasing after that debt? You must first check whether you qualify as “currently not collectible.” At Tax Defense Partners, we specialize in a great array of tax debt resolutions, including dealing with currently not collectible (CNC) accounts.
CNC indicates that a taxpayer has no ability to pay his or her tax debt. That taxpayer must demonstrate that they are in a state of severe financial hardship. They can’t even liquidate assets or make monthly payments to clear their back taxes. In these circumstances, the IRS declares that individual’s account as currently not collectible.
As a taxpayer, you are required to submit substantiating documentation and detailed financial forms to the IRS agent for a thorough review. Once the IRS officially declares that you are currently not collectible, they must stop all collection activities, including wage garnishments and bank levies. Next, the IRS is required to send annual statements to the taxpayer, which remind him or her about the amount of tax still owed. However, it is not viewed as a bill.
If the IRS cannot collect the tax within a 10-year statutory period, the debts automatically expire.
A CNC status gives the taxpayer some breathing room. This gives you more time to get your finances in check and/or find a better tax debt resolution. However, CNC statuses only defer payment. It does not make your tax debt go away. In addition, penalties and interest continue to grow on unpaid tax debt. That’s why it is recommended that you consult with Tax Defense Partners to determine if this is the right solution for your needs. If not, it may further hurt your financial situation.
Tax experts at Tax Defense Partners are trained to evaluate our clients’ specific situation to see if CNC status is the best tax debt resolution for them. Since our inception, our team has effectively negotiated on behalf of thousands of clients. They are only placed in CNC status if they have been proven to be the perfect fit. Let our talented team of licensed tax professionals to negotiate away your tax debt. Stop paying more to the IRS than required by law!
Do you need help with getting back your financial freedom? Contact Tax Defense Partners today to find out if the CNC status is a good fit for your needs.