The IRS has a Currently Not Collectible Status for taxpayers who have faced hardship and are currently unable to pay their tax debt. Generally it is used when someone is having a difficult time financially. For example, it may be used if you have lost your job or had your hours cut back. It can also be used in conjunction with a bankruptcy or when a statute of limitations is close to expiring.
If you are granted this status, the IRS will not continue enforcement actions against you like levies and garnishments. Because this is a temporary solution, interest and penalties will continue to be charged against you.
The Currently Not Collectible Status is a temporary postponement of paying taxes. In some cases, a postponement may last up to ten years. This status is regularly reviewed, and if your circumstances change, you are obligated to notify the IRS. Koontz & Parkin, CPAs can help you review and complete the forms needed to file for this status.
Jo Ann M. Koontz and Marina Parkin offer a powerful combination of in-depth knowledge of tax regulations and years of experience representing clients. To schedule a consultation, call the Sarasota office of Koontz & Parkin, CPAs at 941.328.3993.