Ways to Delay or Stop the IRS Collections Process

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You’ve made every effort to settle your tax bill, but you just can’t achieve a positive standing with the IRS. Collections could be in your future if you don’t take action.

Don’t lose hope just yet. A few final options may be available for stopping IRS collections or at least delaying the process until you can come up with a plan. The following strategies might help:

Currently Not Collectible Status

A common option among struggling taxpayers who are desperate to buy time, currently not collectible (CNC) status makes it possible for those facing financial distress to temporarily halt tax payments. This is by no means a permanent solution, but it can provide just enough relief to help you take control of your financial situation.

The downside? You’ll need to provide considerable evidence to let the IRS know that you’re genuinely unable to pay. What’s more, interest and penalties will continue to accrue while your account is classified as not collectible. If you prefer to limit penalties, you may be better suited to an installment agreement, which allows you to pay off your tax debt gradually.

Deferred Payment for the Armed Forces

For most people, CNC is the only realistic option for at least temporarily halting tax obligations. On occasion, however, the federal government grants specific exemptions. For example, in 2020, a temporary deferral provided a break from Social Security tax obligations for qualifying military members and federal employees. Like CNC status, however, this delay holds its own concerning caveats, including the potential for later reductions in take-home pay.

As you seek CNC status or other options for delaying collections from the IRS, it’s in your best interest to pursue guidance from the Highland Tax Group. We can help you determine whether you qualify for options such as CNC — and whether such delays are advisable. Reach out today for more information.