If you’re struggling to handle IRS tax debt, you may be desperate to buy a little time. IRS Currently not collectible status offers the opportunity to achieve just that. This designation lets the IRS know that you’re officially incapable of paying on your account.
CNC is by no means a perfect (or permanent) solution, but it does provide a few benefits worth taking into account, as highlighted below:
Often, what you need most when you’re struggling with finances is time, plain and simple. Without it, you may never be able to get a handle on your situation.
Time is precisely what CNC status can buy you — at least temporarily. In dire financial circumstances, even a brief pause can make a difference. This is particularly true when you’re worried about potential collection activity, such as wage garnishment.
With CNC status, you’ll get more time to examine your finances and, hopefully, find solutions to the many budgetary concerns that keep you from paying down your tax debt.
Suspension After a Decade
The benefits of CNC can potentially extend long after you’re granted that initial reprieve. Depending on your situation, you may be able to get your tax debt suspended after ten years. This isn’t always possible, but it could turn what seems like a temporary break from collections into a viable long-term solution to crippling tax debt.
Known as the collection statute of limitations, this option could eventually prevent the IRS from collecting not only on your debt but also on all other penalties and interest that may have been assessed along the way.
Are you interested in obtaining CNC status but not sure where to start? Look to the Highland Tax Group for help. We can help you defer tax payments or seek alternative, long-term solutions to your tax issues. Get in touch today to learn more about your options for dealing with IRS debt.