Dec 19, 2007

Your tax debt- Part 4 – The Currently Not Collectible Option

One option for resolving your tax debt problems, if for the IRS to put you in Currently Not Collectible (referred to as “CNC” or “status 53”- the master file code used in the IRS computer system to denote your account as currently not collectible). Except in certain circumstances (I will go over these in a future blog), this status requires the same level of documentation and negotiation needed in other tax resolution options (i.e. Installment Agreements (“IA”), Offers in Compromise (“OIC”)). Also, the amount of tax owed does not correspond with the level of documentation and negotiation required (unless you owe over $100,000 and the IRS will do its’ own investigation). Hence, CNC for $10,000 is the same as CNC for $90,000 in tax debt.

Hence, CNC is merely an IA that the MDI and liquidated asset ability is -0-. It:

Requires full negotiation with IRS
– 433A/F, 433B (if needed)
– Proof of assets, liabilities, income and expenses
Multiple negotiation contact points with IRS
– Note: This is not an easy process

It is recommended that you consult a competent tax professional for all of your options and questions.

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