How Do I Qualify for IRS Currently Not Collectible Status?

How Do I Qualify for IRS Currently Not Collectible Status?

Harmon Tax Resolution

October 5, 2022

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To qualify for Currently Not Collectible (“CNC”) status, one must prove that they cannot pay any portion of the taxes owed. In addition to showing earnings are only enough to cover allowable living costs, one must demonstrate a complete lack of resource availability from borrowing, whether from a bank, credit card, or any associate’s lending funds.

The proof of financial hardship has to be firmly established by the taxpayer. The IRS will require you to show that you do not have assets, income, or borrowing capabilities to pay the taxes due. An IRS financial report format known as the 433-F is where one details these items. Backup support for what is listed is required. A tax attorney-CPA’s professional help to construct and advocate with the IRS could be beneficial in ensuring it is done most accurately and correctly.

Obtaining CNS status will stop all IRS collection efforts towards the tax debt, allowing you the ability to keep afloat. However, during this CNC status, you must make to file your taxes and keep them current; otherwise, the IRS will disallow the CNC status to continue.

In addition to getting financial relief, the 10-year collection statute of limitations on the assessed uncollected taxes continues to run. Once the time statute expires, the tax debt is released permanently. In many cases, while in CNC status, taxpayers have had some if not all of their tax debts removed due to state of limitations expiring.

CNC status can have several benefits. If you have questions regarding CNC qualifications or any other possible tax resolution solutions, please get in touch with us at your convenience. At Harmon Tax Resolution, LLC, your situation will be appropriately addressed by a Tax Attorney-CPA-IRS EA. The initial consultation is free. Call today; sleep well tonight.

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