Currently Not Collectible

Currently Not Collectible Services in California

If you are unable to pay your tax liabilities and there is no way that the IRS can collect on that debt by the normal resolution processes you may be eligible for Currently Not Collectible (CNC) status.

In order to obtain a CNC status you will have to prove to the IRS that paying your tax liabilities would create an economic hardship for you.

CNC General Rule of Thumb

If your income is under the IRS’s allowable expenses, the IRS may qualify you as uncollectible. In most cases they will still require you to be in full compliance with your filings, though exceptions do exist. You may also have to resolve the issues as to why you fell behind with your taxes in the first place.

The IRS will closely review your financial status including details of your monthly income and expenses, as well as your assets and liabilities. They will determine your ability to pay back taxes by comparing your living expenses to its standards for costs deemed necessary by the IRS. Necessary expenses are those that are essential to you and your families health and welfare.

If your wages will not cover your living expenses and you have no assets that the IRS can seize to pay the debt you may be deemed uncollectible until your situation changes. They will require a financial statement each year to show whether you are qualified to maintain CNC status.

If your financial status changes enough to warrant it, the IRS will proceed with other collection means. If the 10-year statute of limitations (CSED) expires while you are on CNC status, the tax debt will remain permanently uncollectible.

The Tax Consultation & Resolution Process

Initial Consultation

The Initial Consultation is the fact finding phase. We want your viewpoint on where you are, what you have done and what the main issues to your tax issues are. We want to know your side of the equation and what your best case scenario goals are. we'll gather personal information that will help us build your personal case profile.

Investigation

During this phase we find out the IRS or State Agency side of the story. What are they looking at? What they think you owe and how they got their numbers? We will also find what needs to be done to bring the client compliant in order to negotiate your resolution case. We then plot out the best options and strategy moving forward to reduce, resolve or elimiate your tax liability?

Resolution

Once we have achieved IRS compliance, our team of tax professionals will negotiate on your behalf and bring about the best resolution possible given the current tax laws and your specific scenario.

Let us help you with Currently Not Collectible

We are eager to help taxpayers across the country get fair resolution to their tax problems. If you would like further information on how we can become part of your tax negotiation team please call Millennia Tax Relief today to talk with one of our Currently Not Collectible Team.

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Currently Not Collectible