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Non-Collectible Status

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There are few events in life more stressful than being unable to repay a debt — especially when it’s a tax debt. The IRS and your state and local tax authorities use aggressive collection tactics. They have the power to garnish your wages, seize your home and bank account assets and more. And unfortunately, ignoring the problem won’t make it go away.

There is good news, however. If you need IRS tax debt relief or debt forgiveness in Denver, Colorado or anywhere in the country, BC Tax can help.

What Is Non-Collectible Status?

The IRS may declare your tax debt non-collectible if it believes that you can’t afford to pay reasonable living expenses along with your taxes. During non-collectible status — called “Currently Not Collectible” — the IRS will stop aggressive collection tactics. It won’t seize your bank account or garnish your wages, which can help you get back on your feet faster.

Non-collectible status won’t let you off scot-free, however. Your account will still accrue penalties and interest charges, which can add up significantly over time. You’ll also forfeit any tax refunds you’d otherwise receive, and the IRS will continue to evaluate your financial situation to determine whether you still qualify for “CNC” status.

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How Do I Qualify for Non-Collectible Status?

Qualifying for CNC status is extremely difficult because what the IRS counts as “reasonable living expenses” probably isn’t what you’d consider realistic. The IRS will want to know if you have any assets that you can sell to satisfy your tax debt. It will also want to know if you can get a loan to pay the debt off.

BC Tax can help you decide whether or not you qualify for IRS tax debt forgiveness. We can:

  • Prepare and file all prior-year and current tax returns if you haven’t already, even if you cannot pay your tax debt
  • Analyze your income, expenses and assets to determine the best path forward, as there may be available options aside from declaring CNC status, such as Offer in Compromise
  • Manage all communications with the IRS to provide a temporary halt to their collection efforts
  • File appeals as necessary

Next Steps for IRS Tax Debt Relief

The most important thing you can do is to get professional help. Do not ignore notices from the IRS or any other tax authority. The earlier you try to resolve your tax debt situation, the better your potential outcome will be. The IRS can continue to collect your tax debt for up to 10 years, and during this time it will review your financial statements in detail.

Call BC Tax for IRS Tax Debt Forgiveness and Relief in Colorado

If you’re unable to pay your taxes and you’d like more information about declaring non-collectible status, call BC Tax. We’ve helped people across Colorado and the United States work with the IRS to achieve tax debt relief and forgiveness. Don’t let IRS tax debt problems keep you up at night — take control of your situation now so that you can start rebuilding sooner.

BC Tax provides complimentary consultations. Call us at (800) 548-4639 or complete our online contact form for more information.

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