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 until you take action. If you cannot make a payment towards your IRS tax debt due to your financial circumstances, then currently not collectible status may be an available option.
What are the Benefits of Currently Not Collectible Status?
Currently not collectible status is a legal option that stops collection activities, including the enforcement of liens, levies and wage garnishment, and provides taxpayers with temporary or sometimes permanent relief from the stress of IRS enforcement actions.
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. The 10 year statute of limitations on collections continues to run and may expire for accounts in currently not collectible status.
Are there any disadvantages to currently not collectible status?
While currently not collectible account status stops enforcement activities at the time the IRS grants the status, it does not stop the accumulation of interest and penalties during the period that the IRS enforcement activities have ceased. Interest may continue to grow and often is a substantial portion of the tax balance due if currently not collectible status is lifted. For taxpayers expecting ongoing currently not collectible status beyond the statute of limitations period, this may not be a big concern.
Take Action Today!
Steiger Tax Law will provide you with a free consultation to help you determine if Currently Not Collectible account status is an appropriate tax relief option for you. Contact Michigan tax attorney Andrew Steiger to discuss your tax situation and develop a plan to help you eliminate your IRS tax debt.
Contact Michigan Tax Attorney Andrew Steiger for free consultation to solve your tax or other legal problem. Information shared is confidential and protected by attorney-client privilege. Free consultation does not establish attorney-client relationship.