Do You Qualify for Currently Not Collectibl
There are many types of financial issues a taxpayer could experience that may qualify them for the Currently Not Collectibl
- Living on a fixed income
- Suffering from an illness that makes you unable to work
How Do You Become Currently not Collectible?
If you qualify to be declared Currently not Collectible (Uncollectible), you will still owe the IRS for your tax liability and interest will continue to accrue. However, all collection activities must be temporarily suspended against you. The IRS will then continue to monitor your financial situation to see if it improves to a point where they can demand payment for your tax debt. This review happens normally every 18 to 24 months. You will be required to send an updated financial statement ( a 433 Form) periodically for them to review. These statements must be accurate because the IRS will compare it to filed tax returns to make sure everything matches.
Advantage to being Currently not Collectible (Uncollectible)
One important thing to note about being considered Currently not Collectible (a/k/a currently uncollectible) is that the Statute of Limitations is still running for those back taxes owed. The Statute of Limitations lasts 10 years on IRS taxes due, if they are not collected in this period, the IRS can no longer collect on these amounts (with some exceptions). Many people have been declared uncollectible (declared Currently not Collectible) for a period of many years and have ended up owing no tax once that statute of limitations has expired.
How We Can Help
As your representative, we will determine if you qualify to be placed in uncollectible status. We will gather your financial statements along with the documentary evidence needed to prove a financial or personal hardship case to the IRS. We will work with the IRS on your behalf to prove that collection on your case should be suspended indefinitely, or at least until your ability to pay improves. Should the IRS deny our request to place your account in uncollectible status, we will prepare and submit a formal appeal and represent you in front of the Appeals Division.
Contact our tax law firm to discuss your tax matter today.