Currently Not Collectible
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IRS Currently Not Collectible Status (CNC)
The Internal Revenue Service (IRS) can temporarily suspend your account in a Currently Not Collectible (CNC) status when they have determined that you presently are unable to pay your tax debt whether through an Installment Agreement or borrowing to full pay your tax liabilities. Once the IRS declares you as currently not collectible, the IRS suspends all collection activities, including levies and garnishments.
Although this may be one of your best alternative to resolving your back taxes, being placed on a Currently Not Collectible(CNC) status does not mean your tax debt goes away. Penalties and interests does continue to accrual until you have fully satisfied your past due tax liabilities.
There are a number of different tax debt resolution arrangements that are available from the IRS. Obtaining the available resolution most favorable to you requires careful preparation and skilled presentation.
Call today to see if you qualify to have your tax debt placed on "Currently Not Collectible" status with the IRS!
Our team works hard and deligently to research all possible resolution:
- Detect Tax Errors
- Audit Reconsideration
- Tax Return Amendments
A thorough financial analysis review to determine specific resolution plan:
- Asset & Income Analysis
- Financial Income Statement
- Draft IRS Form 433-F or IRS Form 433-A
Additional information on "Currently Not Collectible"
How do I qualify to be placed on "CNC" status?
You must have filed all tax returns. (It's OK to owe money but you must file)
You will need to disclose all assets owned including all cash and bank accounts.
You must not have adequate cash available in a checking, savings or brokerage accounts to pay the IRS.
You must not have the capacity to borrow the amount owed to the IRS from sources like, 401k, Home Equity, etc.
Your financial statement is determined negative net desposable each month.
Assuming that you comply with the above list, then you can proceed to presenting a hardship case to the IRS and request to be placed on Currently Not Collectible (CNC) status. The negotiation with the IRS will either take place over the phone with the ACS (Automated Collection System), or in person with an IRS Revenue Officer.
Benefits of being a "CNC" status includes:
Temporary collections hold up to 1 year. (Bank levies, wage garnishments is not enforcable.)
You are not required to make any payments while your account is suspended on "CNC" status.
WARNING! The IRS continues to add penalties and interest while you are on "CNC" Status.How do I request that the IRS place my accounts in currently not collectible status?
You can request currently not collectible status by calling the IRS with your income and expense information. An IRS representative will take your information over the telephone and place your accounts into currently not collectible status. Please have all your income and expense information with you when you call. You should also write down the IRS representative's name and badge number so you can remember who you talked with about your taxes.
Criteria's before you contact the IRS:
- Be sure all your tax returns are filed to be tax compliant.
- Must complete IRS Collection Information Statement Form 433-A or Form 433-F.
- Call the IRS at 1.800.829.8374 possible hold time 30 - 45 minutes.
Once an IRS agent is on the phone, let the IRS agent know that you would like to explain your hardship and that you are currently not in a financial position to make any monthly installments. At this point the IRS agent, would require you to submit either Form 433-F if with "ACS" or 433-A if with a Revenue Officer. The IRS agent will then review your Collection Information Statement to determine your elgibility and may request additional documents to support any claims submitted on the collection information statement.
If you would like to seek professional help on getting you approved for the "CNC" status, we highly recommend you to start with our Phase I process by calling us today at 1 (888) 202-6464.