Currently Not Collectible means that a taxpayer has no ability to pay his or her tax debt. When the taxpayer demonstrates they are in severe financial hardship and have no ability to make monthly payments or liquidate assets in order to pay their back taxes, the Internal Revenue Service can declare the account “currently not collectible.” In order for the IRS to consider placing your account in “currently not collectible” status, the Internal Revenue Service agent will have to review detailed financial forms and substantiating documentation submitted by the taxpayer.
Once the Internal Revenue Service declares a taxpayer currently not collectible, the Internal Revenue Service must stop all collection activities, including levies and garnishments. The Internal Revenue Service must send an annual statement to the taxpayer stating the amount of tax still owed. This annual statement is not a bill. While in “currently not collectible status,” the 10-year statute of limitations on tax debt collection is still running. If the Internal Revenue Service 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 “currently not the collectible” status is the best tax debt relief option for you. “Currently not collectible status” is considered on an individual basis. In the right circumstances, “currently not collectible” 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 IRS tax relief representation by a qualified professional to get the results that you are looking for.