Currently Not Collectible Status
If you owe the IRS money they will use any means possible to collect the tax debt. If a taxpayer truly doesn't have the ability to pay their taxes they can apply for Currently Not Collectible Status. This special status protects people suffering with an economic hardship from collection strategies like levies and wage garnishments.
When the IRS agrees to consider your debt Currently Not Collectible this means that they will halt all attempts to collect a tax debt for a time, but it does not mean they've forgiven the debt. The penalties and interest associated with your tax debt will continue to mount up during this time period. The IRS will also review your situation periodically and will revoke this status if your circumstances have changed.
Do You Qualify for Currently Not Collectible Status?
There are many types of financial issues a taxpayer could experience that may qualify them for the Currently Not Collectible program including:
- Living on a fixed income
- Suffering from an illness that makes you unable to work
Anthony Sykes and Co. Accounting can review the evidence and determine whether or not you can qualify for this status. We'll use IRS guidelines to accurately calculate your gross monthly income, allowable monthly expenses and assets and compare these figures with your back-tax liability. If we establish that you are a good candidate for this status we'll help you compile the necessary financial documentation and tax forms needed to pursue this avenue with the IRS.
Resolving Your Tax Problems
When you consult with a Los Angeles, CA tax accountant like Anthony Sykes and Co. Accounting our goal is to find a long-term solution to your tax problems. Call us at 562-864-2341 today or request a free consultation to learn more about how we can help you find the right tax relief solution.