Currently Not Collectible Status
The IRS has numerous powers to enforce payment of unpaid tax bills. The IRS can levy bank accounts, place liens on real property and undertake a host of other measures that can greatly inconvenience your life. Of course, in some cases, the idiom “you can’t squeeze blood from a turnip” applies.
If your financial situation prevents you from paying anything to the IRS, it is important to seek all available remedies. One such remedy is known as “Currently Not Collectible (CNC)” status. An experienced tax lawyer can be a valuable ally in helping you determine whether you are eligible for CNC status. I am Austin tax attorney, John McDuff. I help individuals and businesses in the full range of tax litigation issues.
When Is Currently Not Collectible Status a Viable Option?
Currently Not Collectible status is generally a possibility when a taxpayer does not have any assets and a low income with which to pay his or her tax debt. For instance, if a taxpayer has health problems that prevent him or her from working, they may be eligible for CNC. In general, a taxpayer must show that further collection efforts will create an undue hardship. My tax litigation law firm will work with you to prepare all appropriate documentation to demonstrate why you are an appropriate candidate for this relief.
Currently Not Collectible status is a significant form of taxpayer relief. Although interest and penalties will continue to accumulate if you are in CNC 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. Consequently, the IRS is not likely to make this determination unless the taxpayer provides extensive documentation. I have significant experience representing taxpayers before the IRS and can place your case in the best possible light.
Contact Austin Tax Attorney, John McDuff
The quality of my work as a lawyer is well recognized by my clients & I have received the AV rating* under Martindale-Hubbell’s peer review rating system. My clients are predominantly from Austin and Central Texas, and occasionally from other states. Contact my office at 512.457.1177 to schedule an appointment.
*AV, BV and CV are registered certification marks of Reed Elsevier Properties Inc., used in accordance with the Martindale-Hubbell certification procedures, standards and policies.
Martindale-Hubbell is the facilitator of a peer review rating process. Ratings reflect the confidential opinions of members of the Bar and the Judiciary. Martindale-Hubbell Ratings fall into two categories - legal ability and general ethical standards.