If you've carefully considered your options and determined that placing your IRS tax debt on currently not collectible (CNC) status is the best temporary solution for you, it's important to be aware that the process is not without its challenges. To assist you, we have outlined below what you need to do to have your account deemed CNC. Follow these guidelines to get started:
Assess Your Eligibility
The first crucial step is to assess your eligibility for CNC status. Unfortunately, there is no specific criteria that guarantees eligibility. Instead, you must closely examine your financial situation to determine if your current tax debt is causing significant economic hardship. For instance, if you are unable to meet basic needs such as paying your mortgage or providing food for your children due to the burden of installment payments, CNC status might be a suitable temporary solution.
Evaluating your likelihood of qualifying can be challenging, so it is advisable to seek assistance from a tax professional. In addition to helping you determine your eligibility for CNC status, a knowledgeable expert can explore alternative options that may provide long-term peace of mind.
Contact the IRS and Provide Necessary Information
CNC status is not automatically granted; you need to initiate contact with the IRS to pursue this option. It is typically easiest to reach out to the IRS over the phone.
Once you have an IRS representative involved in your case, you will be required to provide comprehensive documentation of your financial situation. This usually involves filling out either Form 433-A (the Collection Information Statement for Wage Earners and Self-Employed Individuals) or Form 433-F (the Collection Information Statement). The details provided in these forms may need to be supported by additional documents such as pay stubs or bank statements.
Whether you are interested in obtaining CNC status or exploring alternative solutions for your tax debt, you can rely on our team at Assertive Tax Solutions for a fresh perspective and support throughout the process. Feel free to reach out to us to learn more about the available options for managing your tax debt.
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