Currently Not Collectible
Unable to Pay Your IRS Back Taxes?
Businesses and individuals with IRS tax debts that are struggling to pay their monthly expenses should contact M&M Financial immediately! We’ll outline the resolution options available to you and explain how we’ll help you achieve them. IRS Currently Not Collectible (CNC) status may be one option available to you.
If you aren’t able to pay your tax debt, you may qualify for the IRS Offer in Compromise
(OIC) or CNC status. However, equity in a home or an income producing asset often disqualifies many struggling taxpayers from the OIC. In that case, CNC status may be the best option available.
For a business, proving to the IRS that current tax payments will be made, while also proving the inability to make payments of at least $25 toward the back taxes is difficult at best. Remember, the IRS wants to get paid as quickly as possible without causing a hardship on you, the taxpayer. And that’s the key word, “hardship”. Your definition of "hardship" likely differs from the IRS. At M&M we know what it takes to qualify for CNC status and how to get it for our clients that do qualify.
The process to secure CNC status can be very tricky and is comparable to the procedure of securing a non-streamlined Installment Agreement. It involves an in depth review of your financial condition and generally requires a taxpayer to prove a lack of equity and liquidity in assets and to prove the inability to make a monthly payment of $25 or more.
CNC status lasts for a period of time determined by the IRS, usually based on your Total Positive Income (TPI). Your TPI is reviewed annually when you file your income tax return. For a business, the IRS may set a review period of 12 to 24 months.View client case examples
Currently Not Collectible, Uncollectible, Hardship Status
As a small business owner, it’s important that you obtain a formal resolution to your tax debt, even if you aren’t able to make payments toward it now. CNC status will allow your business to operate without servicing the tax debt, giving you the time and breathing space to weather the financial storm and recover. Without this protected status, the IRS may look to shut your doors through the seizure of the funds in your bank accounts, your A/R and other assets.
To secure CNC status, you will be required to hand over your business and personal financial information to the IRS. At M&M, we’ve completed thousands of Collection Information Statement (CIS) forms for our clients and know them like the back of our hand.
CNC status allows delinquent taxpayers some breathing room to get their feet underneath them before the IRS comes knocking again. Contact M&M
today to find out how our Tax Resolution System
can help you secure CNC status and reduce your tax debt.Get Free Tax Guides & Evaluation