Currently not Collectible | Tax Debt Help | Flat Fee Tax Relief | Florida

What is Non-Collectible Status? Currently not Collectible Status

Having a taxpayer declared to be Currently not Collectible can have many positive outcomes. Being placed into Currently not Collectible status is a situation where the taxpayer can demonstrate that paying the IRS constitutes an “economic hardship.” To be placed in non-collectible status the monthly “IRS allowable expenses” must exceed monthly income on Form 433-A or 433-F.

It is important to understand and know what the IRS allows as an expense and how much the IRS allows for each expense. It is also important to understand that this is usually just a temporary solution. By “temporary” we mean that usually Currently not Collectible status runs for 18 to 24 months. The IRS can reassess the individual’s ability to pay at that time.

While in Currently not Collectible status, the time that the IRS has to collect continues to run. What does that mean? As an example, if someone owes a $60,000 tax debt and the IRS has 5 years left to collect the tax debt and furthermore you have been in Currently not Collectible status for 24 months, then only 36 months remains to collect. So, it is possible to run out the clock (Statute of Limitations) on the tax debt. This strategy can be very tricky to maneuver and it would be best to have an experienced tax professional handle this. Be aware, the IRS can take away Currently not Collectible status whenever they wish.

If the IRS has declared a taxpayer to be Currently not Collectible and you owe $10,000 or more, your best bet may be to submit a tax settlement. An Offer in Compromise (also referred to as the ‘Fresh Start Program) are the most advertised and least accepted IRS solution.

It is possible that our tax professionals have you placed into Currently not Collectible status while we put together your Offer in Compromise submission.

Think about it. The IRS has declared that you cannot pay your tax debt. By being Currently not Collectible, the IRS keeps your tax debt alive. An Offer in Compromise settles your tax debt altogether.

Tax Settlement – Offer in Compromise

The tax professionals at Flat Fee Tax Relief provides IRS tax debt help at a very affordable fee. We are located in Clearwater, FL and San Diego, CA. It is our duty and responsibility to provide you with an honest and comprehensive evaluation of your IRS problem. Our conversation will take 20 to 30 minutes to complete. I have been providing evaluations for more than 15 years. You will know if the best way to go is to place you in Currently not Collectible status or not.

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IRS Hardship | Currently not Collectible | Flat Fee Tax Relief | Florida

The correct term for “Currently Uncollectible” is Currently not Collectable (IRS Hardship) is a method for delaying payment (possibly eliminating payment) of your IRS Tax Debt. The tax professionals at Flat Fee Tax Relief are led by an IRS Tax Attorney. Together, they will work to convince the IRS that you have no way of paying your IRS Tax debt at this time.

The tax professionals at Flat Fee Tax Relief provides valuable IRS tax debt help at a very affordable fee. Our teams are located in Clearwater, FL and San Diego, CA.

Currently not Collectible – IRS Hardship

We, at Flat Fee Tax Relief, as the nationwide leader in stopping an IRS Levy / Tax Levy, usually hear from our clients when they have had a Tax Levy executed by the IRS.

Many of our clients are on Social Security or Social Security Disability (SSDI) and do not have the ability to survive an IRS Levy / Tax Levy and may very well be a candidate to be placed in a status of Currently Uncollectible (IRS Hardship) by the IRS. You do not have to be on Social Security or be on Social Security Disability (SSDI) to be designated as Currently Uncollectible.

The IRS has a complex method of calculating 3 items:

1. Gross Income

2. Allowable Expenses

3. Assets

When you put those 3 items together in the IRS formula, you come up with a taxpayers ability to pay their back tax. Of course, the human element is always a part of this equation. The IRS Revenue Officer handling the Currently Uncollectible petition and the Tax Advocate for the taxpayer play a big part in the decision.

Some of the Allowable Expenses considered for the Currently Uncollectible program are:

a. Food & Clothing

b. Utility

c. Car Payment

d. Car Allowance

c. Medical Expenses (Insurance, prescriptions, etc)

d. Child Support

e. Rent / Mortgage

There are limits on the amounts that the IRS will allow. An experienced Tax Professional will help in the negotiation with the IRS.

The IRS will consider you “currently not collectible” (IRS Hardship) and this status will usually be for a period of one year (twelve months) to 18 months. At the end of the Currently Uncollectible period, you, the taxpayer, will need to show the IRS that your economic situation has not changed. As long as you enjoy the status of Currently Uncollectible with the IRS, you will not be expected to pay any of the IRS tax debt. Your statutory period (IRS Statute of Limitations) does not freeze/stop. The Statute of Limitations continues to decrease as usual.

An important note to being placed in the Currently Uncollectible status by the IRS is this:

If the IRS admits that you cannot pay your back tax, doesn’t it make sense to follow up your Currently Uncollectible status with an Offer in Compromise petition and clean up your back tax once and for all? We believe that if you are Currently Uncollectible that you should continue and clean up your back debt altogether.

You should consult with a Tax Professional. If you would like to speak to us, the team at Flat Fee Tax Relief welcomes your call.

Call Flat Fee Tax Relief1 – 866 – 747- 7435

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