Currently Not Collectible Status


Some taxpayers may find themselves in a current financial hardship where they’re simply unable to pay anything toward their back tax liability. When you have to constantly deal with the payment demands brought on by the IRS or the State of Michigan, it can feel stressful, shameful, and frustrating. You may feel as if you’re stuck struggling to choose between paying off your debt and simply surviving. Luckily, there is hope for your situation.

The IRS has the ability to put you into a “currently not collectible” (CNC) status or “hardship status”, whereby the IRS removes a taxpayer´s account from active collection efforts. Some examples of hardship may include a layoff, temporary illness, or even just living on a fixed income with substantial equity in your home. Unless the taxpayer’s financial situation changes, the account will remain in CNC status until the tax liabilities expire due to statute of limitations.

If you feel you’re stuck in a financial situation where you’re unable to pay your back taxes without taking on financial hardship, our tax experts can determine if you meet the IRS’ requirements to be placed into CNC status which will free you from constant harassment and give you more time to pay off your debts. To find out if you qualify for currently not collectible status, contact us and set up a free consultation.


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