What is Currently Non Collectible?

Currently Non Collectible is a status that the IRS will place a taxpayer in if is proven that the taxpayer is unable to pay their taxes during their current financial sitution.

While Currently Non Collectible does not necessarily wipe a tax liability off a taxpayer’s file, it stops any collection activities including bank levies, wage garnishments, tax liens, and threatening letters from the IRS until their financial situation changes.

 

How Do You Qualify For Currently Non Collectible Status?

To qualify for Currently Non Collectible status, you must first ensure that you are compliant with the IRS.

IRS compliancy is based on your current tax filing status. If you have unfiled tax returns, then you are not compliant with the IRS and you are not qualified for Currently Non Collectible or any other type of IRS Fresh Start Initiative relief program.

If you need assistance with filing your taxes, please contact a TaxRise specialist at 833-419-RISE (7473)

Once you are up to date with your tax filings, you must be able to prove a significant financial hardship that prevents you from paying outstanding taxes.

This determiniation is based on a number of financial factors that the IRS evaluates such as wages, interest, dividends, distributions, income, real estate, and other type of investimates. The IRS will consider these factors and compare them against the taxpayer’s maximum allowable expenses for their zip code to determine if there is any money left over that can be paid toward their balance.

If the taxpayer makes a strong enough case, the IRS must place them in a Currently Non Collectible status and immediately stop all collection activities.

Can I Qualify For Currently Non Collectible On My Own?

Yes, you are able to qualify for Currently Non Collectible on your own but it is strongly advised to consult with a tax relief professional prior to requesting the status with the IRS.

Currently Non Collectible is one of the more complicated resoultions to achieve as it requires a strong case as to why the IRS must stop all collection activities for the near future.

Taxpayers who do secure the Currently Non Collectible status are more likely to be taken out of the status prematurely by the IRS due to poor understanding of the tax code and agreeing to terms that do not serve them long-term.

Once a taxpayer is taken out of the Currently Non Collectible status, the IRS will attempt to collect the tax balance in full, often resulting to the same agressive collection techniques the taxpayer was trying to avoid in the first place.

Why Work With TaxRise To Secure My Currently Non Collectible Status?

TaxRise’s tax professionals work with our taxpayers to ensure that they remain in the Currently Non Collectible status for as long as possible as well as assist in planning on a course of action of what happens once the taxpayer is no longer in the status.

Your tax relief team will work tirelessly to develop a financial hardship case specific to you and your needs, negotiate with the IRS on your behalf, and help you maintain your compliancy throughout your resolution.

Our team has a stellar 98.6% success rate placing our clients in an IRS resolution which is just one of the reasons why we have become the fastest-growing tax relief company in the nation.

Next Steps

If you’re interested to see if a Currently Non Collectible status is right for you, give us a call at 833-419-RISE (7473).

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