Qualifying for Currently Not Collectible Status
If you find yourself overwhelmed by IRS debt and unable to pay due to financial hardship, achieving Currently Not Collectible (CNC) status might provide the relief you need. The Law Office of Max Benkel, has extensive experience assisting clients with securing this status, providing a reprieve from IRS collection efforts.
What is Currently Not Collectible Status?
Currently Not Collectible status is granted by the IRS to taxpayers who demonstrate that their monthly income is insufficient to cover basic living expenses, making it impossible to pay their tax debt at the current time. When a taxpayer is placed in CNC status, the IRS ceases all collection activities including levies and garnishments.
Six Steps to Qualify for CNC Status in Georgia
Qualifying for Currently Not Collectible (CNC) status with the IRS can offer significant relief if you’re facing financial hardship that prevents you from paying your tax debts. Here’s how you can qualify for CNC status in Georgia
Step 1: Understand the Criteria
The IRS grants CNC status when paying tax debt would lead to significant economic hardship, evidenced by all income being consumed by essential living expenses.
Step 2: Gather Financial Documentation
Collect and prepare detailed documentation of your income, monthly expenses, and asset information to present to the IRS.
Step 3: Complete the IRS Collection Information Statements
Fill out IRS Form 433-A (for individuals) or Form 433-B (for businesses) to provide comprehensive financial details to the IRS.
Step 4: Consult with a Tax Attorney in Atlanta
Engage a skilled tax attorney to ensure accuracy in your documentation and to advocate on your behalf during the CNC qualification process.
Step 5: Submission and Negotiation
Submit the necessary forms and documentation to the IRS, and be prepared to negotiate or clarify details if the IRS requires further information.
Step 6: Understanding CNC Consequences
Realize that CNC status does not eliminate the debt; it temporarily halts collection actions, and interest and penalties continue to accrue.
Finding Relief with the Help of a Skilled Attorney
Securing CNC status can be a pivotal step in managing overwhelming tax debt. The Law Office of Max Benkel is committed to providing robust support to individuals and businesses dealing with IRS collections. Schedule a consultation to discuss your situation and explore your options for resolving your tax debt.
