Could IRS Currently Not Collectible (CNC) status be the answer to getting your tax problems forgiven without feeling like you’re hiding from the IRS? While the CNC tax program doesn’t automatically fully forgive tax debt, it does halt collection. Take a look at what you need to know about this program if you’re buried under a tax debt that’s more than you can pay.
A taxpayer is eligible for Currently Non Collectible (CNC) status when the IRS/State recognizes when a taxpayer’s gross monthly income is lower than their allowable expenses under the National Standards.
This essentially means that your financial records prove that you have no realistic way to pay what you owe without incurring very serious and dangerous financial hardship. As a result, collection is halted on your debt.
What Are the Benefits of Entering the IRS CNC Tax Program?
The main benefit is that the burden of an unpayable tax bill will be lifted. In addition, the IRS or state taxing authority will cease all adverse collection activities like wage garnishment, bank levies, and asset seizures. What makes it possible that you’ll never have to pay what you owe in taxes after being accepted into the CNC program? While you’re in CNC status, the IRS Expiration of Statutes (CSED) will continue to run on your owed taxes. Your debt could become permanently not collectible if the 10-year statute on your back taxes runs out before your financial status changes.
Being Realistic About the CNC IRS Tax Program
Unlike common debt-relief and forgiveness options like installment agreements, the CNC program only accepts a fraction of the taxpayers who apply annually. That means that being thorough and forthcoming when submitting your application is important. While some people never pay a dime of what they owe after being accepted into the CNC IRS tax program, others do end up paying some of what they owe. The IRS will conduct periodic financial reviews to see if your financial situation has changed enough that you’re able to make full or partial payments. Failing to answer IRS requests for documentation could get you kicked out of the program.
Is Currently Not Collectible for You? Find Out With Help From Tax Group Center!
At Tax Group Center, we’ve helped countless taxpayers enter into the very exclusive CNC IRS program. This is an option to consider if there is simply no way for the IRS to collect what you owe based on your current financial situation. We’re the perfect team to help you file an application with the IRS because we speak the language of the IRS. Reach out today to explore this debt-relief option!