Currently Not Collectible
Currently non-collectable status occurs when the IRS is in agreement that you do not have the ability to repay the tax debt due to the fact that it would create an economic hardship on you. In essence if you simply cannot afford to pay a lump sum or monthly payments than the government could provide you with a break that may last for years. In order for a currently non-collectable option to be approved you will need to provide a financial statement that lists your monthly household and living expenses. If the IRS agrees that after you pay your monthly bills, such as rent, medical expenses, car loans, utilities, etc that you have zero money left over to pay them they many stamp your account as un-collectable. The process is extremely complicated an it is highly suggested that you hire a professional tax relief specialist in order to compile the necessary paperwork that will lead to success in having your case approved.
It is crucial that your monthly living expenses are reasonable in order for the IRS to consider a hardship. Internal expense guidelines, otherwise know as collection financial standards, are applied that limit your living expenses depending on the area in which you live. Regarding your assets, the government will consider the hardship if seizing the assets would fail to result in any money paid to them. For example, there is zero or negative equity in your property.
Alliance Tax Advocate specializes in currently non-collectable cases. Give us a call today and find out if this method can be the start of the end of your tax issues.