Currently Not Collectible, Trouble Paying Taxes? Platinum Tax Defenders Can Help
- October 6, 2019
- Posted by: Platinum Tax defenders
- Category: Tax Relief
If your economic situation takes a turn for the worst and you can’t pay taxes, Platinum Tax Defenders can help. Our team has experience assisting clients to apply for IRS Currently not Collectible status. The IRS started this program for taxpayers who are struggling financially. What if you suddenly have insufficient funds to pay for the essentials of daily living? How will you pay back taxes if you can’t pay for groceries, utilities, or rent? Whether or not you have the means to pay, the IRS still expects you to deal with your taxes. However, Platinum Tax Defenders knows of a way to get the IRS to stop chasing after your debt. You must first determine if you qualify for the IRS Currently Not Collectible program. At Platinum Tax Defenders, we specialize in a variety of tax debt programs. If you are eligible, we can help you get Currently not Collectible status.
What Is Currently Not Collectible?
When the IRS declares a taxpayer as Currently not Collectible, it means they cannot pay their taxes. The taxpayer must prove that they are in a state of severe financial hardship. Making monthly payments is not an option for taxpayers whom the IRS declares as Currently not Collectible. However, earning Currently not Collectible status isn’t always so easy. Taxpayers must submit documentation and other financial details to the IRS for a thorough review. You may only have one chance to apply for Currently Not Collectible status. For that reason, it’s imperative to work with a tax resolution expert at Platinum Tax Defenders. The Platinum Tax Defenders teams know which documents the IRS needs, and how to submit them. Once the IRS declares you as Currently not Collectible, they must stop all collection activities. The IRS will continue to send you annual statements of your tax debt.
How Can I Qualify for Currently Not Collectible Status?
Platinum Tax Defenders can help determine if you’ll qualify for CNC status before you apply. The IRS uses a specific formula to determine if you are eligible for Currently Not Collectible status. Platinum Tax Defenders has years of experience understanding that formula to help its clients determine if they’ll qualify. The IRS’ method is to determine if you will have too little money left after you pay for living necessities. It’s important to note that the IRS has its definition of living needs. If you inflate your expenses, your application for Currently not Collectible status becomes invalid. For that reason, it’s essential to work with Platinum Tax Defenders when applying for CNC status. With the various technicalities of Currently not Collectible status, it’s helpful to consult with Platinum Tax Defenders.
How Long Does Currently not Collectible Status Last?
Currently not Collectible status can last up to ten years. The IRS generally has ten years to collect back taxes, after which time they remove the back taxes. As an example, if you filed in 2009 and owe back taxes, the IRS can collect until 2020. However, if your 2009 taxes are in Currently not Collectible status, the IRS will leave you alone. You may be able to be deemed Currently not Collectible for ten years. After the statute of limitations runs out, the IRS will remove your tax obligation. It’s important to remember that the IRS will review your income situation every two years. If your financial situation improves, you will have to start paying back taxes.
Can You Pay Back Taxes While in Currently not Collectible Status?
If you have extra money to pay taxes, the IRS recommends making small payments while in Currently not Collectible status. Paying the back taxes should not affect your IRS Currently not Collectible status.
When is Currently not Collectible a Good Option?
Platinum Tax Defenders can determine whether you are a right candidate for Currently not Collectible status. Every taxpayer’s financial circumstances are unique. However, Currently not Collectible status can help you get out of debt with the IRS, especially if:
- You only have a few more years left on the ten-year statute of limitations
- Your annual salary is less than $84,000 a year. Additionally, your living expenses should fall within the IRS’ guidelines for Currently not Collectible status.
- The only income you have is from Social Security benefits, welfare benefits, or unemployment
- You are currently unemployed and have no other source of income
Platinum Tax Defenders are Currently not Collectible Experts
While Currently not Collectible status will not clear your tax debt, it gives you some breathing room. You will have more time to get your finances in order and find a better tax debt solution. However, Currently not Collectible status will only defer your tax payment. Having Currently not Collectible status will not make your debt go away. Also, penalties and interest will continue to grow on your unpaid tax debt. For that reason, it’s advisable to consult with Platinum Tax Defenders while you’re under Currently not Collectible status. The team at Platinum Tax Defenders can determine the right solution for your tax debt needs. If your financial situation improves, you will have to begin paying back your taxes.
Call Platinum Tax Defenders Today for a Free Consultation
The tax experts at Platinum Tax Defenders have the training to evaluate your specific situation. We can determine if Currently not Collectible status is the best tax debt resolution for you. Since inception, our team has negotiated on behalf of thousands of clients. Our talented team of licensed tax professionals can settle your tax debt. Don’t pay more to the IRS than you are required to by law. If you need help getting back your financial freedom, call Platinum Tax Defenders today. We can find out if the IRS Currently not Collectible status is a good fit for your needs.
Additionally, we understand that not all taxpayers can afford to pay for tax relief services. For that reason, we partnered with Lending USA to offer special financing for tax resolution clients. You can now enjoy up to 60-month financing to pay for your tax relief services.