Currently Not Collectible Status (CNC)
The IRS has ways to enforce the payment of unpaid tax bills. They can place a levy on your bank account(s), enforce a liens on your real estate property, and much more. However, in some cases, financial situations may prevent a person from paying anything at all to the IRS. The idion “you cannot squeeze blood from a turnip” applies here.
If you are unable to pay the IRS due to financial circumstances, it is important that you seek all available remedies. One such remedy is known as “Currently Not Collectible (CNC)” status. An experience tax lawyer, such as John McDuff, can help you to determine whether you are eligible for CNC status.
When Is Currently Not Collectible Status a Viable Option?
Those eligible for Currently Not Collectible status typically do not have any assets for the IRS to collect on and have a low income with which to pay his or her tax debt with. Those who are unable to work (due to health problems, etc.) may be eligible for CNC. In general, a taxpayer must show that further collection efforts by the IRS will create an undue hardship. The Law Office of John McDuff, P.C. will work with you to prepare all of the appropriate documentation necessary to prove that you are a good candidate for CNC status.
Although interest and penalties will continue to accumulate while you are in Currently Not Collectible status, the IRS is required to stop collection efforts for one year. If your financial position does not improve, you may remain in CNC until the statute of limitations bars further collection by the IRS. Because of this, the IRS is not likely to grant this status unless the taxpayer provides extensive documentation. John McDuff has 20+ years of experience representing taxpayers before the IRS, and he can place your case in the best possible light.
Contact Tax Attorney, John McDuff
The Law Office of John McDuff, P.C. serves individuals in Austin, Travis County, and Central Texas. If you would like to discuss your case, contact us today at 512.457.1177. You can also contact us online.