Currently Not Collectible Status

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How To Get Currently Uncollectible Status From The IRS?

Each year, most people pay their taxes when they file, while others set up payment plans with the IRS. However, some taxpayers can settle the tax debt because they can't afford it. When the taxpayers are in financial hardship, they can get their account to an uncollectible IRS status, or known as the Currently Not Collectible (CNC), which allows them to defer paying their tax due until their situation enhances.

How To Qualify For CNC Status?

The toughest part is, when you need CNC status, you must prove to the IRS that you cannot afford to pay your tax bill. And to prove that, you need to document your financial situation for the IRS.

  • The IRS will look for your investments, savings account, funds, and other financial documents and will make a decision if you qualify for Currently Not Collectible Status.
  • If you don't have any assets to pay your tax debt, the IRS will want you to document your average monthly income and see if you can pay them with an installment agreement.
  • The IRS may also ask you to file a financial statement, requiring you to prove your monthly income (such as pay stubs, bank deposits, etc.) and monthly expenses (including receipts).

How To Request CNC Status?

To get a CNC status, you or your trusted CNC and OIC Tax Services professional must contact the IRS first. You can write or call the IRS, but it is usually faster to reach them by phone because the IRS can tell you what you will need to provide to prove your financial difficulty.

Also, if you have already prepared all your financial information and documents, you can usually fax it to the IRS during the call and get a quick prior decision.

Do Not Ignore Your Tax Bills!

People who ignore their tax bill get a false sense of safeness and security that the IRS will overlook the issue, too. The IRS can indeed put taxpayers into CNC status if the IRS cannot locate them, but those taxpayers will be unrestricted to federal tax liens, bank levies, wage garnishments, and more.

If you are not sure how you can pay your tax dues, consider consulting with a tax expert to understand your options, such as Tax Experts For America. We can help you decide which is the best solution for your needs that suits your financial capacity. We will work with you from start to finish until we achieve your goal.

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