What is Currently Non-Collectible?
Currently Non-Collectible is a status that the IRS will place a taxpayer in if it is proven that the taxpayer is unable to pay their taxes during their current financial situation.
While Currently Non-Collectible does not necessarily remove a tax liability from a taxpayer’s file, it does stop any collection activities including bank levies, wage garnishments, tax liens, and threatening letters from the IRS until the taxpayer’s financial situation changes.
How Do You Qualify For Currently Non-Collectible Status?
To qualify for Currently Non-Collectible status, you must first ensure that you are compliant with the IRS.
IRS compliance is based on your current tax filing status. If you have unfiled tax returns, then you are not compliant with the IRS and you are not qualified for Currently Non-Collectible, nor are you compliant for any other type of IRS Fresh Start Initiative relief program.
If you need assistance with filing your taxes, please contact a TaxRise specialist at 833-419-RISE (7473)
Once you are up to date with your tax filings, you must be able to prove a significant financial hardship that prevents you from paying outstanding taxes.
This determination is based on several financial factors that the IRS evaluates such as wages, interest, dividends, distributions, income, real estate, and other types of investigates. The IRS will consider these factors and compare them against the taxpayer’s maximum allowable expenses for their zip code to determine if there is any money left over that can be paid towards their balance.
If the taxpayer makes a strong enough case, the IRS must place them in a Currently Non-Collectible status and immediately stop all collection activities.
Can I Qualify For Currently Non-Collectible On My Own?
Yes, you can qualify for Currently Non-Collectible on your own, but it is strongly advised to consult with a tax relief professional before requesting the status with the IRS.
Currently Non-Collectible is one of the more complicated resolutions to achieve as it requires a strong case as to why the IRS must stop all collection activities for the near future.
Taxpayers who do secure the Currently Non-Collectible status are more likely to be taken out of the status prematurely by the IRS due to poor understanding of the tax code and agreeing to terms that do not serve them long-term.
Once a taxpayer is taken out of the Currently Non-Collectible status, the IRS will attempt to collect the tax balance in full, often resulting in the same aggressive collection techniques the taxpayer was trying to avoid in the first place.
Why Should I Work With TaxRise To Secure My Currently Non-Collectible Status?
TaxRise’s tax professionals work with our taxpayers to ensure that they remain in the Currently Non-Collectible status for as long as possible. We also help our clients strategize a course of action to take once they are no longer in that status.
Your tax relief team will work diligently to develop a financial hardship case specifically for you and your needs. Furthermore, we will negotiate with the IRS on your behalf and help you maintain your compliance throughout your resolution.
Our team has a stellar 98.6% success rate placing our clients in an IRS resolution, one of the many reasons why we have become the fastest-growing tax relief company in the nation.
If you’re interested to see if a Currently Non-Collectible status is right for you, give us a call at 833-419-RISE (7473).
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