Currently Not Collectible
Once your account is placed in CNC status, the IRS will stop collection activity and will release any levies and garnishments that have been issued against you. However, interest and penalties continue to accrue and are added to your unpaid taxes during this period.
You can qualify for CNC status by proving to the IRS that after paying all of your reasonable basic living expenses there is no money left over to make payments on your back taxes. In addition, you must not have any equity in assets that you can sell or borrow against to pay your taxes.
Normally, unless your financial situation changes, you will remain in not collectible status until the statute of limitations on collections expires, at which time your tax debt is forgiven. The IRS will periodically monitor your financial situation to determine whether there has been any improvement which allows you to make full or partial payment of your back taxes. Let our expert CPAs analyze your situation to determine whether you may qualify for Currently Not Collectible or Hardship Status.
Call us today to learn how we can help you!
With over 30 years of experience, our tax professionals are here to help you obtain relief from your tax problems. Let our team of CPAs help settle your tax debt for the lowest amount permitted and solve IRS problems such as bank levy, IRS audits, wage garnishments, unfiled tax returns, IRS liens and payroll tax penalties. Proudly serving Boca Raton, Plantation, West Palm Beach and elsewhere throughout Florida. Schedule your Free Consultation today!