If you agree with the IRS that you owe taxes, but can’t pay due to your current financial situation, the IRS may agree to place your account in Currently Not Collectible (CNC), also called “hardship” status. While your account is in CNC status, the IRS will not generally engage in collection activity (for example, it won’t levy on your assets and income). However, the IRS will still charge interest and penalties to your account, and may keep your refunds and apply them to your debt.
We will evaluate whether you may qualify for CNC status and if so, can apply to the IRS on your behalf.
- Prepare and file any delinquent tax returns for prior years (if you were required to file a return).
- Gather your information to verify your income, expenses, and any debts you owe on your assets (loans).
- Prepare and submit the appropriate documentation and information to the IRS on your behalf to maximize your chances of being granted non-collectible status.
- Review and respond to IRS correspondence notices in the event they contact you to re-examine your status (typically occurs every 2-years).
A. Taxpayers who can prove that they have little or no income and no available or liquid assets to pay their tax liabilities.
Q. What happens once I'm approved for CNC status?
A. During the time you're in CNC status, the IRS will stop trying to collect the tax to allow you time to become financially stable. However, the IRS may review your income annually to see if your situation has improved . Generally, the IRS can attempt to collect your taxes up to 10 years from the date they were assessed, though the 10-year period is suspended in certain cases. The time the suspension is in effect will extend the time the IRS has to collect the tax.
Q. Does this option permanently eliminate my tax liability?
A. No. The tax is still owed and interest and penalties continue to apply. However, if you remain in uncollectible status until the statute of limitations expires, the taxes will no longer be owed.
Q. What is the cost of this service?
A. Our IRS tax resolution fees are based on our flex-fee structure, and all costs are pre-approved by you when you decide to hire us. We offer payment plans, if needed, and set our fees so you do not have to worry about unexpected legal bills. There are no surprises, no add-ons. Because every situation is different, we recommend you Schedule a Tax Consultation so we can discuss your case in detail.