A currently not collectible status indicates that the taxpayer is unable to pay their tax debt without compromising their allowable living expenses. The IRS has guidelines they follow to determine if the taxpayer’s situation falls under this hardship rule. The program is meant to assist taxpayers who are in a difficult financial situation, and can be a great resolution which not only protects from all IRS enforced collection action, but also allows you to pursue other settlement programs such as the Offer in Compromise.
Without the representation of a tax attorney, it will be difficult to understand the position of the IRS as to what they deem as collectible. There are specific guidelines that have to be met and forms that need to be submitted in order for this process to work.
At Guzhva Law Firm, we are providing thoughtful solutions and measurable value to each individual situation. Because U.S. tax law and regulations are complicated and constantly changing, it is important that you obtain up to date information about the provisions that apply to you to prevent costly mistakes.
To schedule a free phone consultation with an IRS collections attorney, please contact us today. With offices in Bellevue, we work with tax clients throughout Seattle and Washington State, and elsewhere.