Currently Not Collectible
Taxpayers under serious financial stress quickly find out that the IRS can make that stress a whole lot worse. The IRS will continue enforcement actions unless and until a taxpayer proves that he or she cannot pay any amount towards past taxes without sacrificing payments for basic living expenses. Taxpayers facing this situation may apply for Currently Not Collectible account status. Currently Not Collectible status stops collection activities, including the enforcement of liens and levies, and provides taxpayers with relief from the stress of IRS enforcement actions.
Steiger Tax Law can help you determine if filing for Currently Not Collectible account status is your best option. Currently Not Collectible status may be used as part of an overall plan to reduce existing tax debts over a period of time when other options are currently unavailable but may become available in the future. While Currently Not Collectible account status stops enforcement activities, it does not stop the accumulation of interest and penalties. Interest may continue to grow and often is a substantial portion of the tax balance due. If you have questions or need help figuring out if this tax relief option may be right for you, contact Michigan tax attorney Andrew Steiger for a free consultation.