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Currently not collectible status could help with tax debt

| Jun 17, 2020 | Tax Debt

Taxes are one of the inevitable obligations that working adults in Atlanta and across the country have to face. Though most people try to stay on top of their taxes and do their best to pay when necessary, financial complications could result in individuals accruing tax debt. This is certainly not an ideal situation, and many people want to find relief from this burden.

For some parties, applying for currently not collectible status may be a viable option. Financial problems could put individuals in a position where they are unable to realistically pay their taxes and their living expenses. For taxpayers contending with this scenario, requesting currently not collectible status could allow them to receive a delay in collections. However, the IRS must approve this status, and it must be specifically requested.

The IRS will not approve this request for just anyone, and taxpayers making the request may need to provide proof that their financial situation is as challenging as they claim. The IRS may require a Collection Information Statement for taxpayers to provide needed information, including monthly income and expenses. It is also important to keep in mind that even if the status is approved by the IRS, it is only a temporary reprieve, and the tax debt still exists.

Though it may not be a permanent fix for tax debt, currently not collectible status could give struggling Atlanta taxpayers the opportunity to work toward improving their financial affairs without worrying about collection efforts from the IRS. Because dealing with the IRS in any capacity can be difficult, it may be wise for parties considering this option to seek help. Knowledgeable tax attorneys could assist interested parties apply for this status and explore other relief options as necessary.

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