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Tax debt and the currently not collectible status

On Behalf of | Mar 16, 2022 | Tax Debt

While many individuals in Georgia and elsewhere might not be excited to file and pay taxes, some might be dreading the process out of fear that they will be unable to make payments. Issues such as tax debts remain a concern for many individuals and when similar issues arise, the average person might not be aware of the available options with which to seek much needed financial relief. One possible option could include seeking insight on whether one might be eligible to qualify for the currently not collectible status, but some might not even know what this entails. 

Tax status 

According to experts, the currently not collectible status pertains to individuals who the IRS determines are not capable of making payments on tax debts. This might apply to those who would not be capable of paying for necessities such as rent or groceries if required to make tax payments. Those seeking to qualify for CNC status may need to provide proof of their financial situation and limitations, and this step can be somewhat complex at times.  

While the relief provided by CNC status may only be temporary, it could help protection a person from collection attempts or even issues such as wage garnishment. It may also be vital to note that those who qualify for this status will not receive tax refunds in the future, as the IRS may retain these funds until tax debts are paid in full. There is also a list of requirements to qualify for CNC status, and factors that may influence eligibility may range anywhere from yearly income to living expenses. 

Questions about qualifying for CNC status 

Individuals who struggle with tax debts may wonder how to tell if they might qualify for relief through options such as CNC status. Since the process can be complex, a person could consider speaking with an attorney in Georgia for advice in choosing the best path for tax debt relief. An attorney can work with a client in exploring all available options, including CNC status, and assist in creating a strategy with which to protect his or her financial future.