Some taxpayers just don’t have any ability to pay their back taxes. This status is not for all and the taxing authorities of course require proof to substantiate such hardship claims. If after going through the taxpayer current monthly income and applying them to national standards and local standards and the taxpayers net monthly income is zero or negative then the taxpayer could qualify for currently not collectible status.
Under this status the taxing authority, i.e. the Internal Revenue Service cannot collect on the debt owed via levies, other than by taking any tax refunds owed the taxpayer. The tax liability does remain and penalties and interest generally do continue to accrue. Nonetheless, generally, if nothing else is occurring the statute of limitations on collection of the debt will continue to occur as such at the end of the period the debt will be wiped out.
The taxing authorities will look into the status to see if anything has changed at least yearly or bi-yearly. Contact the Carr Law today to assist you with your tax liability including assistance with seeing if you qualify for hardship status and if so having you placed on hardship status.
Currently Not Collectible