Currently Not Collectible (CNC) means that a taxpayer has no ability to pay his or her tax debt. When the taxpayer demonstrates they are in a severe financial hardship and have no ability to make monthly payments or liquidate assets in order to pay their back taxes, the IRS can declare the account “currently not collectible.”  In order for the IRS to consider placing your account in CNC status, the IRS agent will have to review detailed financial forms and substantiating documentation submitted by the taxpayer.

 

Once the IRS declares a taxpayer currently not collectible, the IRS must stop all collection activities, including levies and garnishments.  The IRS must send an annual statement to the taxpayer stating the amount of tax still owed. This annual statement is not a bill.  While in CNC status, the 10-year statute of limitations on tax debt collection is still running. If the IRS cannot collect the tax within the 10-year statutory period, then the tax debts will expire.

 

Our tax experts at Direct Tax Relief will evaluate your specific situation to see if CNC status is the best relief option for you.  CNC status is considered on an individual basis. In the right circumstances, CNC can indeed provide a good tax solution that permanently solves your tax problem.  In other situations it might be a temporary fix to give the taxpayer some breathing room until other tax solutions are available.  You need expert tax representation by a qualified professional to get the results that you are looking for.

Call today at (800) 505-4134 for a FREE Tax Resolution Analysis.

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