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Seeking not currently collectible status from the IRS

On Behalf of | Jun 30, 2016 | IRS Issues

Georgia residents who owe money to the Internal Revenue Service but do not have sufficient income to make payments under an installment agreement could qualify for what the agency refers to as currently not collectible status. You may qualify for this designation if you have no disposable income left after paying all of your bills and living expenses. When the IRS deems that an account is not currently collectible, all collection and enforcement activity temporarily ceases.

While having your IRS account in currently not collectible status will not address your underlying tax issues, it could provide you with the time you need to put your financial situation in order. A currently not collectible status may be granted to taxpayers who have been laid off, are unable to work due to an injury or illness or have encountered a business setback of some sort.

If your account is determined to be currently not collectible by the IRS, the agency will send you a letter from time to time reminding you about your unpaid taxes. You may also be asked to submit an updated financial statement. If your financial situation does not improve, your account will remain in currently not collectible status for up to 10 years from the date of the assessment. After 10 years, the IRS is no longer able to collect the debt.

The IRS only agrees to grant not currently collectible status in situations where making payments under an installment agreement would amount to a major hardship. We have considerable experience in negotiating these types of arrangements. If you owe money to the IRS and are worried that your assets could be seized, you are invited to visit our page describing the services that we might provide.