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Taxes are an inevitable part of life. Though many people dislike paying their taxes, it is a serious problem for others. When you are in a place of financial instability or have significant expenses, it can be impossible to properly pay your taxes to the IRS.
This situation is certainly stressful, but knowing you are not alone in Jacksonville, FL is important. Thousands of people around the country are unable to pay their taxes and support their families at some point in their lives. The IRS understands this and offers options for those who are unable to pay at the normal time.
A “currently not collectible” status allows you to delay your tax payments so that you can support your family. With the help of a collectible status lawyer, you can navigate this situation and achieve the best possible outcome for your family and your finances.
If you are facing a tax problem or are curious about collectible status benefits, it is easy to feel overwhelmed. Taxes are a serious legal responsibility, so there is no room for error. It is important to know what you are doing when you navigate your state and federal tax status. Our team at TaxSmith LLC has many years of experience in federal and state tax law. We thoroughly understand all your options and how to navigate the tax system so that you can resolve your issue quickly and legally.
When it comes to taxes, you do not want to risk errors. You could find yourself in serious trouble if you do not follow all steps correctly. A TaxSmith LLC lawyer can help make your collectible status or other federal tax lien feel approachable and manageable. We approach each case without judgment and with the intention of helping you feel comfortable and in charge of your tax status.
Many people do not understand the currently not collectible (CNC) tax status until they need to file it. This lack of knowledge is understandable, but it is important to know some background before making any changes to your tax status.
A currently not collectible status means that you know and agree that you owe money to the IRS, but your current financial situation makes it impossible for you to pay properly. In other words, you cannot afford both your basic needs and taxes. In these situations, you can change your IRS status to “currently not collectible.” This means that, though you still owe taxes, the IRS will not try to collect the money.
A currently not collectible status buys you some extra time to pay your taxes without the intimidating and harassing letters that the IRS would otherwise send. They also generally will not try to levy your assets to pay your taxes; in other words, they will not try to take your home to pay your tax debts.
A CNC status does not make you exempt from interest or other IRS penalties for late payment. You will likely have to pay more than you would have if you paid on time. However, it does give you some flexibility and helps you to keep your home and other assets while you figure out how to pay.
When an IRS account is in “currently not collectible” status, the IRS will not try to collect payment on the account. Generally, the department will also refrain from levying your home or taking other tax liens to pay what you owe. Currently not collectible means that the IRS is giving you extra time to pay your taxes due to hardship or inability to pay. The department will still collect interest or levy fees if your account is in CNC.
You can get a currently not collectible status by calling the IRS directly. However, it is often difficult and complicated to navigate the IRS and get your situation resolved. Many people benefit from hiring a currently not collectible status attorney to help them navigate the situation. We can walk you through all the steps, ensure that you understand your options, and help you to file for CNC status if it is right for you.
Ten years. The statute of limitations begins to count down while the CNC is in place. This means that as soon as your CNC status begins, the ten years also begins. If you cannot pay your back taxes in a 10-year period, the IRS cannot legally collect this money.
Though this sounds appealing, the IRS will put forth a significant effort to collect, especially if you have been in CNC status for a long time.
If the IRS places you in an uncollectible status, it means that they recognize that you cannot pay your taxes without experiencing significant and debilitating financial hardship. In other words, you cannot afford your basic living expenses and your taxes at the same time. The IRS will avoid collecting your taxes if this is the case to allow you to focus on survival rather than taxes. However, you will eventually be asked to pay or suffer alternative punishment.
For many years, our team has been helping individuals and families navigate their taxes. The United States tax system is complicated and puts many people at a disadvantage. We are here to help you with any tax issue that you may encounter and give you the necessary resources to take control of your tax status. Whether you currently have a CNC, are looking to file for one, or have questions about your status in general, we can help you to understand your situation and move forward with confidence.
For more information about how TaxSmith LLC can help you, contact our team online.
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