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Currently not Collectible (CNC)

Currently not Collectible

There are a number of reasons why a taxpayer with hardships may want to consider filing for Currently not Collectable status. Do you suffer from hardships that make it financially difficult or impossible to pay your tax debts? Will paying your tax debts mean that you will not be able to cover your basic needs in life? Perhaps the IRS is trying to acquire past tax debts from an LLC or a general partnership and there are no assets available to repay the debt? If any of the aforementioned conditions applies to you or to a business you are a part of you may be able to obtain CNC status.

For Individuals

The vast majority of individuals seeking CNC status do so because they suffer from a physical or economic hardship. In many cases, these two causal factors can be inter-related. One of the conditions required to meet this particular IRS classification is a serious medical problem. If you presently suffer from a terminal illness you may qualify. As well, if you suffer from a non-terminal, serious health problem that requires extensive, costly and ongoing medical treatment you may qualify. In the latter case, an IRS Revenue Officer will most likely review your particular economic circumstances to insure that making payments will definitely cause you a hardship.

There are many other reasons the IRS may grant you, as an individual, this status. For example, if you are active duty military and presently serving in combat, you may be eligible. If you are presently serving a prison term you may be eligible. If you have no source of income at all or if your only source of income is unemployment or social security and/or welfare you may be eligible as well.

As an individual, you may request to be reviewed for CNC status by the IRS or you can have your case reviewed by an independent tax advisor that understands this type of request. IRSTaxReliefNow.org will review your present situation completely free of charge to help you determine if you qualify for this status. Call IRSTaxReliefNow.org at (888) 332-8959 for free assistance.

How to Apply on Your Own
If you would like to apply for CNC status on your own you will need specific forms. The IRS requires you file a collection information statement if you are a wage earner or if you are self employed. This file is referred to as Form 433-a. You can download Form 433-a from the IRS directly or download the form from our free tax Relief guide HERE.

For Businesses

Under certain circumstances, some business may be able to qualify for CNC status. In most cases, this status is reserved for limited liability companies and limited partnerships. Qualifying for this status depends on whether or not the LLC or partnership is in operation, whether the LLC or the partnership has any assets available or if the corporation has zero revenues available to be levied.

If you own or represent a business and you are unable to pay your back taxes, you can file for CNC status directly through the IRS. However, you will have to begin the process of disclosure first by filing a specific form, namely, IRS Form 433-b. IRS Form 433-b. Form 433-b is a Collection Information Statement for Business. You will be required to disclose all financial records, business contact information and business personnel information as well as the businesses’ existing assets and liabilities. You can obtain Form 433-b here: http://www.irs.gov/pub/irs-pdf/f433b.pdf

Due to the more involved nature of filing for CNC status as a business, business owners and representatives thereof should consider obtaining a consultation from a tax professional prior to filing if they are concerned about making full disclosure without adequate representation. If you own or represent a business with serious tax problems and you would like a free consultation to determine if filing for this status is in the best interest of the business, contact IRSTaxReliefNow.org for a free consultation at (888) 332-8959.

Other Considerations
Filing for this specific tax status will help you avoid having to pay for back taxes that you or your business cannot afford. However, this tax status can be abused and the IRS takes very seriously abuses of this tax status. IRSTaxReliefNow.org recommends that you never falsify any information supplied to the IRS in your efforts to obtain this status. You should never try and hide sources of income or hide assets in your efforts to avoid paying taxes. Doing so represents tax fraud. If you commit tax fraud, your problems will escalate from bad to worse as penalties for tax fraud and evasion are, on the balance, far greater than the avoidance of tax debt.

Where to Obtain Help
Taxpayers with legitimate hardships and businesses with legitimate hardships can contact a local IRS office to discuss their specific tax problem with a Revenue Agent. If you would like to read more about the specifics of this particular tax status you can do so directly on the IRS webpage that details this status here: http://www.irs.gov/irm/part5/irm_05-016-001r.html#d0e426.

Free Consultation from IRSTaxReliefNow.org
You can request a free consultation from IRSTaxReliefNow.org to determine if filing for this specific tax status is in your best interest. Call us at (888) 332-8959 to set an appointment that is convenient for you.

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