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When you are unable to pay your taxes

On Behalf of | Feb 9, 2017 | IRS Issues

Some Georgia residents are financially unable to pay their IRS bills because of not having anything left to pay towards their bills after their other expenses. If you owe back taxes and are unable to make payments to the IRS because of your limited income, you may qualify for a “currently not collectible” status with the IRS.

When you are granted this status, it means that the IRS will not take further collection activities for the tax debt that you owe. Instead, the agency will send you a letter from time to time asking that you update your financial statements. If your income and expenses remain unchanged, then you will not be required to pay your back taxes.

If 10 years pass, the IRS will not be able to collect on your old back tax debt that was judged to be currently not collectible. If you believe that you may fit the criteria for the status, you will need to be able to prove it to the agency in order to secure the designation.

At our law firm, we work to help our clients with their tax problems. When people are unable to pay their tax debts, we try to convince the IRS to designate the back taxes as currently not collectible. We are headed by a tax lawyer who used to be an IRS chief counsel lawyer, so he understands how both the tax defense and prosecution sides work. If you want to learn more about getting your taxes declared as currently not collectible, you might want to read the information we have included about the topic on our CNC page.