Are You Eligible for Non-Collectible Status With the IRS?
CNC – Currently Non-Collectible. To individuals with huge tax debts, this term seems like a free hall pass – a “Get out of jail free” card,” if you will – and for good reason. When an individual is declared CNC status, the IRS must stop all wage garnishments, release all levies and cease all collection activities entirely. However, it’s important to note: CNC status does not exempt you from paying your back taxes. What it does is stall the inevitable.
How to Obtain CNC Status
In order to receive CNC status, you must prove that you don’t have any assets that would enable you to pay off your outstanding tax debt. Furthermore, you need to prove that you make just enough money to cover your basic necessities such as rent, food, clothing, health insurance, car payments, court ordered payments (child support), loans, utilities, auto insurance, maintenance bills, etc. Seems simple, right? Unfortunately, dealing with the IRS is NEVER “simple”.
In addition to proving that you have nothing of value to offer the IRS – and in addition to documenting each and every one of your daily expenses – you must fill out and file the “Collection Information Statement for Wage Earners and Self-Employed Individuals” form.
And even when you complete all of this information, there is no guarantee that the IRS will take heart and have sympathy. They are, after all, not known for being overly accommodating.
In order to achieve the best possible outcome, contact us before attempting to file for Non-Collectible status. Visit http://www.irsallstar.com/our-services#8 to see what we can do to help.