Currently Not Collectible
Your life has taken a turn for the worse, the company you work for has made your full time job into a part time job and your hours are unpredictable. You have the money to pay for the essentials of daily living, like groceries, utilities, rent, etc. Worst, you still must pay your taxes. There may be a way to stop IRS from chasing after that debt.
There are times where you agree you owe the IRS, but you can't pay due to your current financial situation. If the IRS agrees you can't pay both your taxes and your reasonable living expenses, it may place your account in "Currently Not Collectible" (CNC) status.
While your account is in CNC status, the IRS generally won't try to collect from you. For example, it won't levy your assets and income. However, the IRS will still assess interest and penalties to your account and may keep your refunds and apply them to your debt. You'll also continue to receive an annual bill from the IRS because that is required by law.
Before the IRS will place your account in CNC status, it may ask you to provide financial information including your income and expenses and whether you can sell any assets or get a loan.
During the time the IRS may collect the balance you owe, it may review your income annually to see if your financial situation improved. Generally, the IRS can attempt to collect your taxes up to ten years from the date they were assessed, though the ten year period is suspended in certain circumstances. The time the suspension is in effect will extend the time before the IRS has to collect the tax.
Call us for a free consultation and we'll discuss how we may be able to help you.