You’ve weighed your options and decided that IRS currently not collectible (CNC) status is the best option for temporarily handling your IRS tax debt. Unfortunately, moving forward is far from easy. To help, we’ve explained how to have your account deemed CNC. Follow these steps to get started:
Determine Your Eligibility
First and foremost, you need to feel confident that you actually qualify. There is no single metric you can count on to verify your eligibility, however. Instead, you’ll need to take a close look at your financial situation and determine whether your current tax debt creates clear economic hardship. For example: if, due to installments, you’re unable to pay your mortgage or get food on the table for your kids, CNC could be a temporary solution.
Evaluating your likelihood of qualifying can be difficult, so don’t hesitate to work with a tax professional. In addition to determining whether you’re eligible for CNC status, this expert can help you explore potential alternatives that can provide long-term peace of mind.
Contact the IRS And Provide the Necessary Information
CNC status is not automatically granted. You (or, preferably, a skilled representative) need to reach out and get in touch with the IRS. Typically, this is easiest over the phone.
Once an IRS representative is involved with your case, you’ll need to furnish extensive proof of your financial situation. In most cases, this means filing either Form 433-A (the Collection Information Statement for Wage Earners and Self-Employed Individuals) or Form 433-F (the Collection Information Statement). Details referenced in these documents may need to be backed up by documents such as pay stubs or bank statements.
Whether you’re interested in obtaining CNC status or finding another solution to your tax woes, you can count on our team from the Highland Tax Group for a fresh perspective, plus support as you seek new arrangements. Reach out to learn more about available options for dealing with your tax debt.