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Qualifying for currently not collectible status

On Behalf of | Aug 29, 2023 | Tax Debt

While facing high tax obligations can be harrowing under any scenario, there may be some instances in which similar trials could place a significant burden on one’s life. Individuals in Georgia who struggle under the weight of significant tax debt burdens may have questions about the available options to help protect their future interests. Currently not collectible status is an option that could help provide much-needed relief from high tax debts, but some might not know how to tell if they are eligible for this program. 

Addressing eligibility for CNC status 

Experts indicate that there are various factors the IRS might consider when determining if one is eligible for CNC status. One such factor may pertain to a person’s yearly income and there are various sources of income that may act to determine this amount. The IRS may also consider whether one’s only sources of income stem from Social Security or welfare benefits, or if an applicant is unemployed and currently has no income. 

The IRS may also ask questions about a person’s current living expenses and whether expense amounts meet IRS guidelines. Another factor to address may involve the monthly income that is spent on basic living necessities and how much is left over after meeting these needs. It could also be helpful to note that this may only be a brief list of factors involved with eligibility for CNC status, and a person might not have to meet every requirement to qualify. 

Applying for CNC status 

There may be a variety of scenarios in which applying for currently not collectible status could prove a viable path to seeking relief from tax debt concerns. Since this can be a complex process, those who have questions about whether they might be eligible for such a path could benefit from speaking with a tax law attorney for assistance in evaluating their situations. Seeking such advice may be vital to helping a person prepare a strategy with which to safeguard his or her financial future by pursuing relief from tax debt concerns via the appropriate channels.