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FLAT FEE TAX RELIEF
Coast to Coast IRS Help
IRS Hardship - Currently not Collectible

Our Tax Pros Can Get The IRS Off Your Back

Filing your taxes, even when you are not able to pay them, is a must. It isn't against the law to have an IRS debt, it is against the law to have unfiled tax returns. Should you agree with the Internal Revenue Service (IRS) that you owe it money, but you cannot pay, the IRS may place your account in “CNC,” or Currently Not Collectible, status. For those who are unable to meet their tax burden, CNC can be a financial lifesaver.

 

A taxpayer may want to seek Currently not Collectible status if their IRS debt is less than $10,000, which is the minimum to file an Offer in Compromise.

You may have hard assets (real property) but lack liquid assets (income) to pay your IRS tax debt. This could be a reason to seek Currently not Collectible status. Being Currently not Collectible can provide "breathing room" while an Offer in Compromise is being prepared.

Understanding Currently Not Collectible Status


Essentially the tax relief program known as Currently not Collectible (CNC) will provide you with protection from the IRS enforcement and other collection actions against your assets (tax lien, levies, seizures, wage garnishment, etc.). Being placed into CNC status does not mean that your IRS debt is settled. To settle your tax debt, you need to submit an Offer in Compromise. CNC does not mean that you do not have to ever pay the money you owe the IRS, or that the IRS will not assess penalties (like late fees) against you during the time you remain in CNC.
 

Section 5.16.1.2. of IRS Code explains the different situations in which an account may be moved to CNC status. For example, CNC status may be granted when:

  • Collection of taxes would create “a hardship for taxpayers” that leaves them unable to meet basic cost of living expenses;

  • When an individual dies and there is no collection potential from their estate;

  • When a taxpayer (or their assets) cannot be located; or

  • When a taxpayer cannot be contacted, even though location is known.

You may have heard of being "Currently not Collectible" as IRS uncollectible, IRS hardship, Currently non-collectible, or CNC. It's all the same and when you are in Currently not Collectible status, the IRS will leave you alone for approximately 18 to 24 months. During this period of time, the Statute of Limitations will continue to run out. CNC can be renewed. Every month on Currently Not Collectible status is one less month that the IRS can collect the tax debt. Yes, there will be a federal tax lien filed but credit reporting services have stopped posting tax liens. The IRS debt may just go away by running out the collection clock.

 

How to Obtain CNC Status

 

As stated above, CNC status can be an essential part of financial health for those who have a tax liability but are unable to pay it. An attorney can help to guide you through the steps of applying for CNC status, which include proving that you do not have any assets that would provide you with the ability to pay your tax burden. To prove this, you must fill out and file several forms, including Form 433-A. This is a highly comprehensive form that should be filled out with a knowledgeable tax attorney. You will also need to include a copy of your tax return, proof of living expenses (including healthcare and transportation), and more.

The status of Currently Not Collectible (IRS Uncollectible status) means precisely what you think. It has been proven to the IRS that you are unable to collect on your tax liability or the assessed penalties and interest under the following circumstances.

  • Personal income covers only your essential living costs with no leftover money that the IRS can take

  • Lack of valuable assets subject to levying

  • Note that the IRS is not allowed to seize an asset that has less than 20 percent equity in the item or if the expense involved in seizing and selling is higher than the value of the equity

Although the idea of having nothing worth taking is not the ideal position to be in, it can help with dealing with the IRS. If your tax liability is considered uncollectible, collection activities by the IRS will be halted. While the IRS will be unable to collect against you, interest and penalties will continue to accrue on your tax debt.

Our tax professionals and IRS problem-solvers serve clients nationwide but often work with clients in Daytona Beach, Orlando, Jacksonville, Tampa, Key West, and Miami. When you call us for your free case consultation, we will do everything we can to make sure that your tax issue is fully explained to you and that you understand what your tax relief options are. From there, we will work hard on your behalf to procure the best resolution possible.

 

To learn more about the tax relief program known as Currently not Collectible (CNC) status, contact Flat Fee Tax Relief today.

1-866-747-7435
 

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FAQ Regarding Currently not Collectible Status

I need food, how do I access your services?


We can only offer short-term food provisions to individuals, couples or families who have been referreed to us by a Care Professional. Please have a look at our Need Help page to find out more.

This is a list of charities, institutions and churches that we work with.




How do I refer people to you?


If you work for another NGO or charity or for a government institution such as Caritas and you are a Care Professional that would like to refer someone, please fill in our referral form.




How do I donate food?


If you refer to our How to Help page, you will find all details on the types of food that we need as well as where to drop off food to our Valletta premises. Please do feel free to contact us if you need further information.




How do I donate money?


There are several ways you can donate money, whether via PayPal, bank transfer or by posting a cheque. Please have a look at our Donate page for more information.




Can I donate cash?


Yes, however we do not suggest you send cash via the post. It would be better if you can bring it to our centre at 210, Old Bakery Street and you will be issued with a receipt. Please refer to our opening hours at the bottom of the page.




How can I be sure that the money I donate goes into Foodbank funds?


Foodbank Lifeline’s accounts are professionally audited. Unless specified otherwise, all donations are spent only on food.




How do I know the food goes to the people who really need it?


All our clients are referred to us by Care Professionals who are currently working with these people to help improve their circumstances. We provide food on a short-term basis, leaving the professionals to concentrate on supporting the families through the crisis and help them get out of it.




Can we donate fresh or frozen food products?


Presently we don’t have the facilities to store or distribute fresh or frozen food products. Many of our clients don’t have any means of storing such products either. We suggest you refer to our Shopping List to see the types of food that make up our 7-day food packs for individuals, couples and families experiencing a crisis.




Can we donate items that are short dated?


Yes, we will gladly accept short dated items, but please be aware we cannot hand them out once they are past their best before date. Many wholesalers donate short dated items to us and we wish that many others would do the same as we also aim to reduce food waste. We aim to distribute those items before others to ensure nothing is wasted.




Can we deliver donations outside of your opening hours?


It is possible. It would be best if you can contact us directly, so we can discuss your request.