When You Just Can’t Pay
Many taxpayers are not aware that they may qualify for Non Collectible Status, or Currently Not Collectible (CNC) status. As the name implies, this little known IRS status is for taxpayers who are not able to pay anything on a monthly basis without incurring serious financial difficulty. So serious that even the government will not pursue collection. CNC status buys you time to figure out how to solve the tax liability.
However, your opinion of whether or not you can pay anything is likely very different from the IRS’s opinion of your inability to pay. Using a tax professional to aggressively advocate your position is crucial.
Just as with an Offer in Compromise or an Installment Agreement, you must provide the same financial information by filing Form 433. The difference is that your financial situation is so bleak that even a small monthly payment is not possible.
Keep in mind that while you are in Non Collectible Status, interest will continue to accrue. So at the end of the uncollectible period, you will owe more than before. Nevertheless, CNC status gives you the breathing room you need. And you may remain classified CNC as long as you file future tax returns and pay balances owed on those returns on time, and your income does not increase significantly.
Don’t delay! If a Notice of Intent to Levy has been filed or the IRS has taken other steps to collect, you are at risk of losing your paycheck, having your bank account seized or having other assets taken and sold. You must take immediate action.
For a Free, No Obligation Consultation, contact us:
Please fill out our online form and find out what we can do to assist you.
Or call us at: 702.796.4000
From our offices in Henderson and Las Vegas, our Nevada tax attorneys will provide the highest quality legal services to clients with IRS problems.
Remember, even if Non Collectible Status is not right for you, there are other options. Some of our other services include:
Offers in Compromise
Tax Court Representation
So, if you can imagine getting the IRS off your back . . . without having to speak directly with the IRS yourself, contact us now.
Please fill out our online form, or call to schedule your free initial consultation. Payment plans are available if needed.