CURRENTLY NOT COLLECTIBLE
Currently Not Collectible status (also known as CNC status) is a temporary option for people who owe back tax debt, but who are currently experiencing financial hardship. This status allows breathing room for the delinquent taxpayer to get back on their feet financially, before they can pay the tax debt back to the IRS. This status can be secured with just a phone call to our experts at Vanguard Tax Relief, but completing the Form 433-A (for individuals) or the Form 433-B (businesses) is required.
How Do You Qualify?
- To qualify for CNC status, you will need to show that making a payment toward your tax debt would cause a hardship. This means that you would need to have only enough money for necessary living expenses (such as rent and groceries), or even less than that.
- You will need to show an inability to pay a monthly payment of $25 or more.
- You will need to have no assets that the IRS would consider worth levying. A levy is a seizure of your assets, such as a property or automobile.
- You will need to call the IRS and/or file a form with information about your difficult financial status.
- You many need to provide documentation of your financial status.
If you have already experienced a levy, you still have options to resolve it. The IRS would rather resolve your tax debts in ways other than a levy and provides options to do so.
It’s Important to Know:
- This is a temporary solution. Your debt does not go away- when you no longer qualify for CNC status, you will have to resume payment.
- CNC status does not stop interest and penalties from growing on your debt.
- Your financial status will be periodically evaluated by the IRS to check to see if you still qualify for CNC status.
- You can negotiate a release with an IRS field agent
- You can show that the statute of limitations for your tax debt had expired before the IRS filed a tax levy, if this situation applies to you
If you think you might qualify for the Currently Not Collectible status, Vanguard Tax Relief can carefully assess your situation and provide expertise assistance. CNC status is an important kind of tax relief that can help you while you are experiencing one of the most difficult financial periods of your life. A tax expert like the experienced professionals at Vanguard Tax can help make sure your documentation is in place so you can get the help you need once you have secured the CNC status. Vanguard tax Relief will help you make the best possible steps to get out of back tax debt.