Currently Not Collectible

Across the State of Florida, there are many taxpayers who find themselves behind in their taxes, with back taxes owed to the IRS, with little or no hope of paying off the debt in the foreseeable future. This may be for any number of financial hardships. The good news is, in these situations, the IRS has a tax relief measure called: "Currently Not Collectible."

When Does Currently Not Collectable Apply?

While almost all taxpayers would wish that this would apply to their situation so that they could get temporary IRS relief, the fact is, a person must be in a pretty difficult situation that makes it very unlikely that the IRS would be able to collect monies owed -- at least not without putting the taxpayer through great hardship.

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If you owe the IRS for your back-taxes but suffer from little or no income and can demonstrate that you're not employed, resulting from sickness, serious and debilitating health issues, old age, disability or other causes, you may be able to stop collection activities and enforcement action, for the time being. While this is not a permanent solution, it does give the burdened tax-payer some much-needed breathing room. If in addition, you lack assets such as a home with equity, or vehicle or other type of property that the IRS could potentially levy, you're also a prime candidate for "Currently Not Collectible." People who often fall into the "currently not collectable" category may earn the minimum threshold income allowing for only the basic necessities of life. The IRS takes this into consideration when applying this provision.

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The fact is, many well-intentioned taxpayers would like to pay taxes but are unable -- and many of them may not be aware of the legal options available to individuals going through financial hardship. In addition to "currently not collectable", taxpayers may qualify for other tax relief programs such as tax abatement to get relief from penalties and late fees, an installment agreement, offer in compromise to pay less than the full amount owed, innocent spouse relief and more.

For all of these reasons, it makes sense to strongly consider taking advantage of the experience and expertise of a BBB-A-Rated tax relief professional who can stand by your side and protect your rights and assets by negotiating with the IRS. This could not only save considerable money, but days and months of stress as well over the IRS and potential enforcement actions.

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Speaking of IRS enforcement actions, did you know that a "Currently Not Collectible" (CNC) can also stop (at least temporarily) an IRS bank levy, wage garnishment, and other IRS collection actions or demands. It's also interesting to note that the ten-year collections statute of limitations continues to be in effect for CNC recipients. So if you're a taxpayer who owes the IRS and the CNC extends to the end of the statute, the IRS debt is retired and no longer due. It should also be noted, that this does not happen in the majority of the CNC cases.

For financially-strapped taxpayers, being granted a CNC status can come as quite a welcome relief. But it does not come without some basic requirements. The IRS will expect you and for those with a tax specialist working on their behalf, to submit an updated financial statement. This is a yearly requirement for as long as the CNC remains in effect. It must demonstrate that income and assets are still at or below the IRS benchmark minimum to keep the CNC alive. The IRS will conduct its own internal review to check for accuracy, comparing it against yearly returns and information supplied by third parties.

Regardless of your current tax issue, if you owe back taxes to the IRS and are facing wage garnishment, bank levy, tax lien, or other IRS enforcement action, don't ignore notices and letter hoping that the situation will go away. The fact is, IRS problems don't go away, they normally get much worse and much more painful over time. Florida Tax Relief believes you deserve to know your legal rights and options and all the legal tax remedies available to you, including "currently not collectible."

BBB-A-Rated tax relief specialist are ready to assist you now with your free tax relief consultation.