What a CNC Status Means
A taxpayer facing a $10k+ in tax debt or significant hardship needs the protection and expertise of a tax professional specializing in tax debt help. The sole purpose for the IRS existing is to collect all funds owed for the Federal Government. A tax professional you can trust who’s an expert in navigating the rivers of the IRS is key to help you qualify for this CNC status. A CNC status is when a taxpayer with no ability to pay their outstanding tax debt can be declared Currently Not Collectible (CNC) status by the Internal Revenue Service. The burden of proof rests in the taxpayer’s ability to qualify for “hardship” cases.
Qualifying for CNC status is not easy. Mistakes can cause a taxpayer to be rejected, or the taxpayer may unwittingly provide information that can hurt his case.
Advantages of Currently Not Collectible Status
When you declare your case as Currently Not Collectible to the government, this validates your financial condition is so severe that you’re unable to make even the minimum payment.
The IRS are required to send you an annual statement of the tax amount owed, which is not a bill. Each year you remain in CNC status, it’s required you submit an updated financial report.
- All collection activities must stop, i.e. letters, phone calls, bank levies, garnishments, etc.
- The 10-year statute of limitations to collect the tax debt continues to run during this time
- The tax debt may never have to be paid
- Payment of the tax debt would cause undue hardship for the taxpayer, leaving them unable to cover necessary living expenses
- Bankruptcy/suspension of corporate business functions with no remaining assets
- Death of a taxpayer
- Inability to locate taxpayer assets
- Inability to locate a taxpayer
- Special action, i.e. tax debts for military personnel in a combat zone
If your status ends, tax law pros can assist you in qualifying for another tax debt relief program that will enable you to pay off your tax debt in a reasonable timeline and amount. Give us a a call to speak with an expert now, and let us walk you through what options are available to you.
Benefits of Working with a Tax Professional
Experienced negotiation is required with the IRS when attempting to gain acceptance of your financial status. By working with tax professionals like us, who’ve done this thousands of times over decades, we can shield you from these negotiations, and will battle them on your behalf. Saving you time, money, and stress. Whether they be Revenue Officers, or the main organization itself, we go to battle day-in and day-out on our client’s behalf.
Statistics show taxpayers who attempt to qualify for CNC status on their own are often not successful. Do not allow the IRS to intimidate you into accepting a less-than-satisfactory tax debt resolution.