Irs Currently Non Collectible Status

By Author: Jeff Parrack
Total Articles: 4762
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OK, you owe IRS a lot of money and you can't pay them. So what else is new? You're not the only one. Take a number. Join the club. It could be worse. Your neighbors could have ten pit bulls and seven rotweilers that all go crazy over your scent. Wait a minute. That sounds like IRS. Uh-oh. Maybe we need to talk about it.

When IRS is owed money by taxpayers, the people at IRS really do try to work out those problems in a nice and polite and agreeable manner without cutting off arms and legs and leaving a lot of blood at the crime scene. Most of the people who work at IRS are normal and ordinary, just like you and me. Well, okay, just like you. They just happen to work for Darth Vader or Lord Voldemort or The Mafia. Trust me on this, I know what I'm talking about because I talk to these people up to ten times a day, five days a week, fifty weeks a year.

If you owe taxes and can't pay them, IRS will work with you to resolve your tax problem. One of the best ways to begin an agreeable program with them is called IRS Currently Non Collectible Status or CNC Status, also known as IRS Uncollectible Status.

Before ...
... you can get into IRS Currently Non Collectible Status, you have to meet their requirements for membership. And before you can meet their requirements for membership, you have to know what those requirements are.

So here's a beginner's list:
1. You must have filed at least your last six income tax returns.
2. You must disclose a lot of personal information, including phone numbers, employers, banks, retirement accounts, dependents, assets owned (like real estate, automobiles, boats, etc.), credit cards and balances. Most of this information is required to get a bank loan, so it's not that intrusive.
3. You must disclose a lot of income information, including hourly, weekly, biweekly, bimonthly, or monthly gross income, tax deductions, and all other deductions on your pay stubs.
4. In fact, you must usually fax to your IRS representative a copy of your pay stub.
5. You must disclose a lot of monthly expense information, including rent or mortgage, utilities, auto and other loan payments, medical expenses, child support and other court-ordered payments, transportation expenses (like gas and oil, insurance, tolls, repairs, etc.), estimated tax payments, etc.

You can see that you will have to bare your soul and give IRS just about everything in your life, but the rewards of the IRS Currently Non Collectible Status Program are worth it.

Hey, this isn't easy. That's why most people seek out professional help when they find themselves in bad situations with IRS.

Once a person is classified as CNC, that person must continue to do a few things to maintain that status:
1. File all future income tax returns on time, and
2. If anything is owed on those tax returns, it must be full-paid.

If both of these requirements are not met, then the taxpayer will default CNC Status and IRS will begin enforced collection action all over again.

Just like any business, IRS wants to get paid and they want to get paid as fast as possible. You can't blame them for that.

IRS Currently Non Collectible Status isn't for everyone. In fact, fewer than ten percent of taxpayers can qualify for it. But those who do qualify for it find it to be a real stress reliever. They can sleep at night; they can answer the front door easily; they don't dread the mailman. So do some research on it and see what you think.
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