Assets Currently Not Collectible
About "Currently Not Collectible" Status
There is a status that the IRS can assign to your past due taxes called "Currently Not Collectible." This would be done in the event that you are unable to pay them or don't have the assets to liquidate in order to generate the money needed to resolve the debt. While you are under this hardship status, no collection actions can be taken by the IRS in terms of wage garnishment or levies against you.
Understanding What This Status Means for you
While this status does leave you some temporary breathing room, it does not mean you are completely off the hook. There are some stipulations that are important to be aware of.
"Currently Not Collectible" comes with the following rules and stipulations:
- Penalties and interest will continue to accrue while your financial situation improves.
- Proof to the IRS that your level of income limits you will be required.
- The statute of limitations for having to pay off past due taxes is 10 years.
- If you continue to run for 10 years in hardship status, your debts may be forgiven.
- The IRS will require updated financial information on a yearly basis to determine ability
Helping Resolve IRS Matters
Mr. Miller has 30+ years of accounting, tax and legal experience that he utilizes in an effort to help resolve his clients tax issues. He has a unique understanding of tax law, due in part to his prior position as an IRS Revenue Agent and the fact that he is a certified public accountant as well as an attorney. During his career he has successfully assisted clients with countless tax law matters and may be able to help you too.
Contact a tax lawyer if you feel that you are qualified to have your tax debt classified as "Currently Not Collectible".