IRS will agree to collect nothing from our clients once placed on currently non-collectible status.

IRS will agree to collect nothing from our clients
once placed on currently non-collectible status.

IRS Currently Non Collectible Status

IRS Currently Non Collectible Status

Currently Non Collectible, also known as "CNC" is an IRS status in which the IRS views a taxpayer as having no ability to pay the IRS anything. Once this status is obtained, the IRS immediately stops all collection action. Such collection action may include garnishments (wage and bank levies), against the person or business. The question then becomes, why choose to offer the IRS anything through an offer in-compromise settlement when you need not pay the IRS anything under the currently non collectible status?

The benefits of "currently non collectible status" are as follow. First, as mentioned earlier, all levy activity stops. Second, the IRS takes no action to collect against you while you maintain this status. Third, you can stay on non-collectible indefinitely.

The drawbacks of non-collectible are numerous. First, although the IRS cannot collect from you while you are currently experiencing a financial hardship, if your situation improves the IRS will resume garnishments. Second, even though the IRS cannot garnish or collect against you while on non-collectible status, you still owes the tax debt. The tax debt does not go away. Third, while on currently non collectible, the IRS will take your tax refund each year and apply it towards the balance owed.So long as you are on CNC and owe the IRS a tax debt, you will never receive a refund.

IRS TROUBLE?
Better Call Paul
Michigan 586.933.5818

Our office often times uses CNC as a strategic and temporary measure typically in conjunction with an offer in compromise. For example, if a client qualifies to make an offer in compromise, we use the currently non collectible status as a tool to stop garnishments. This give us enough time to submit for an offer without causing undue hardship on our clients. Also, attempting currently non collectible status is a fantastic pre-qualifying tool for us to use prior to submitting an offer in compromise to the IRS.

Call The Tax Lawman for a free evaluation. Let us determine whether currently non-collectible status is your best option or to stop a garnishment.

Currently Non Collectible, also known as "CNC" is an IRS status in which the IRS views a taxpayer as having no ability to pay the IRS anything. Once this status is obtained, the IRS immediately stops all collection action. Such collection action may include garnishments (wage and bank levies), against the person or business. The question then becomes, why choose to offer the IRS anything through an offer in-compromise settlement when you need not pay the IRS anything under the currently non collectible status?

The benefits of "currently non collectible status" are as follow. First, as mentioned earlier, all levy activity stops. Second, the IRS takes no action to collect against you while you maintain this status. Third, you can stay on non-collectible indefinitely.

The drawbacks of non-collectible are numerous. First, although the IRS cannot collect from you while you are currently experiencing a financial hardship, if your situation improves the IRS will resume garnishments. Second, even though the IRS cannot garnish or collect against you while on non-collectible status, you still owes the tax debt. The tax debt does not go away. Third, while on currently non collectible, the IRS will take your tax refund each year and apply it towards the balance owed.So long as you are on CNC and owe the IRS a tax debt, you will never receive a refund.

IRS TROUBLE?
Better Call Paul
586-933-5818

Our office often times uses CNC as a strategic and temporary measure typically in conjunction with an offer in compromise. For example, if a client qualifies to make an offer in compromise, we use the currently non collectible status as a tool to stop garnishments. This give us enough time to submit for an offer without causing undue hardship on our clients. Also, attempting currently non collectible status is a fantastic pre-qualifying tool for us to use prior to submitting an offer in compromise to the IRS.

Call The Tax Lawman for a free evaluation. Let us determine whether currently non-collectible status is your best option or to stop a garnishment.