What is Currently Non-Collectible?
Currently Non-Collectible is a status that the IRS will place a taxpayer in if the taxpayer cannot pay their taxes during their current financial situation.
Is Currently Non-Collectible Status Right For You?
Unlike the other three Fresh Start tax programs, Currently Non-Collectible is a status.
While this status does not necessarily remove tax debt, it does stop any collection activities. Such activity includes bank levies, wage garnishments, tax liens, and threatening letters from the IRS.
Currently Non-Collectible status does allow a taxpayer to seek and devise a tax relief strategy in peace, without the IRS coming after them. It does not last forever, so you must be prepared to take appropriate action as soon as the status begins.
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.
The IRS bases your compliance on your current tax filing status. If you have unfiled tax returns, you are not compliant with the IRS, and you are not qualified for Currently Non-Collectible. Nor are you compliant and eligible for 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). We have a staff of tax preparers who routinely file the most complicated tax returns for businesses and individuals alike.
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.
The IRS bases the determination on several financial factors, such as wages, interest, dividends, distributions, income, real estate, and other investigates. The IRS will consider these factors and compare them against the taxpayer’s maximum allowable expenses for their zip code to determine any leftover money left that can go towards 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 can qualify for Currently Non-Collectible on your own, but most strongly advise you to consult with a tax relief professional before requesting the status with the IRS.
Currently Non-Collectible is one of the more complicated resolutions 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 out of the Currently Non-Collectible status, the IRS will attempt to collect the tax balance in full, often resulting in the same aggressive collection techniques the taxpayer was trying to avoid in the first place.
TaxRise highly recommends that you consult with a tax professional before requesting this status from the IRS. Should you try to apply for the IRS Fresh Start initiative program on your own, the IRS will try to get you to agree to terms that are more favorable for them.
Why Should I 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. We also help our clients strategize a course of action to take once they are no longer in that status.
TaxRise is a settlement-focused tax relief company. Our tax attorneys work with the IRS and get tax relief offers approved every single day. We have a great understanding of the IRS Fresh Start Program qualifications, and we will not be bullied or tricked by the IRS into a less-than-optimal resolution.
Your tax relief team will work diligently to develop a financial hardship case specifically for you and your needs. Furthermore, we will dialogue with the IRS on your behalf and help you maintain compliance throughout your resolution.
Taking on the IRS isn’t a one-man job. To successfully reach a resolution with the IRS, it takes an entire team of professionals. TaxRise has just that; a team of dedicated experienced specialists.
Our team has a stellar 98.6% success rate placing our clients in an IRS resolution, one of the many reasons we have become the fastest-growing tax relief company in the nation.
If you’re interested in seeing if a Currently Non-Collectible status is the best option for you, give us a call at 833-419-RISE (7473).
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