Currently Not Collectible Status

currently not collectible

If you owe the IRS money they will use any means possible to collect the tax debt. If a taxpayer truly doesn't have the ability to pay their taxes they can apply for Currently Not Collectible Status. This special status protects people suffering with an economic hardship from collection strategies like levies and wage garnishments. When the IRS agrees to consider your debt Currently Not Collectible this means that they will halt all attempts to collect a tax debt for a time, but it does not mean they've forgiven the debt. The penalties and interest associated with your tax debt will continue to mount up during this time period. The IRS will also review your situation periodically and will revoke this status if your circumstances have changed.

Do You Qualify for Currently Not Collectible Status?

There are many types of financial issues a taxpayer could experience that may qualify them for the Currently Not Collectible program including:

  • Unemployment
  • Living on a fixed income
  • Suffering from an illness that makes you unable to work

Resolving Your Tax Problems

Thomas G. Rex, CPA can review the evidence and determine whether or not you can qualify for this status. I'll use IRS guidelines to accurately calculate your gross monthly income, allowable monthly expenses and assets and compare these figures with your back-tax liability. If I establish that you are a good candidate for this status I'll help you compile the necessary financial documentation and tax forms needed to pursue this avenue with the IRS.

When you consult with a Tucson, AZ tax accountant like Thomas G. Rex, CPA my goal is to find a long-term solution to your tax problems. Call me at 520-433-9291 or request a consultation to learn more about how I can help you find the right tax relief solution.