Help With IRS Currently Not Collectible Status 

Tax Attorneys to Help You Get Relief & Stop IRS Collections

When you owe taxes to the IRS, the agency may start ramping up its collection actions at any time. This can lead to serious issues, such as federal tax liens, levies, and wage garnishments. If you qualify, currently not collectible (CNC) status can protect you from enforcement escalation.

CNC status is a temporary pause on IRS collections on your account because of financial hardship. To see if you qualify for CNC status or to learn more about this hardship program, contact The W Tax Group. 

Can’t Afford to Pay the IRS? You’re in the Right Place

Our CNC status services may be right for you if you can’t afford to pay your IRS taxes and you’re dealing with these situations:

• The IRS is sending you multiple notices or threatening collection actions.
• You are facing wage garnishment or bank levies.
• You can’t afford to make monthly payments on an IRS payment plan.
• Your business’s cash flow is strained due to tax debt.
• You owe taxes due to an audit, and paying would cause financial hardship.
• You were rejected for hardship relief and want help to appeal.
• You need immediate relief.

We regularly work with taxpayers who can’t pay their tax debt due to limited income, including taxpayers who are self-employed and businesses that are struggling to meet their payroll tax obligations. 

Contact us to find out more about our IRS tax hardship program services and how this option can help in your situation.

How Can CNC Status Help You?

If you can’t afford to pay your tax debt, CNC status stops the risk of IRS escalation, including preventing wage garnishment and asset levies to your accounts or property. It protects you while you get back on your feet – but for many taxpayers, CNC status can provide permanent relief. 

Here’s how: if you’re on CNC status until the collection period expires, the IRS will not be able to collect the remaining amount. They’ll write off the tax debt, and you won’t have to pay it. 

But to protect yourself, you need to take action now. Otherwise, the consequences could be:

• Increasing balance with penalties and interest
• Escalating IRS notices in the mail
• Bank account freezes or seizures/levies
• Wage garnishment, reducing income
• Business disruptions and closure
• Loss of resolution options over time

It’s tempting to ignore your tax debt, but that approach will make the situation worse. At The W Tax Group, we help you understand all of the possible avenues for resolution, including negotiating with the IRS, hardship relief, or debt settlement.

Our Process for IRS Hardship Status Cases

The W Tax Group takes a customized approach for every client we work with. For hardship or CNC status cases, this is what you can expect from our process:

Taking Over IRS Communication

We will start communicating with the IRS on your behalf, which may require filing a Power of Attorney, responding to meeting requests from Revenue Officers, or taking other steps. 

Securing Tax Collection Holds

One of the most important initial steps is stopping any serious action the IRS may take, like filing tax liens or using levies to seize assets. We’ll make sure you hit deadlines to prevent these actions.

Reviewing Documentation

We will analyze your tax history and your current financial situation to assess your eligibility for CNC status. If it’s not the right option, we’ll help you look at alternatives.

Negotiating With the IRS

Then, we submit your request for hardship and provide the IRS with the facts about your situation. We’ll make sure you have a strong case for CNC status based on the tax code and built around compelling narratives.

Ongoing Tax Monitoring

We will help you set up better tax systems to avoid future problems and monitor your account for any signs of trouble. If your financial situation improves, we’ll help you figure out how to start paying off your debt with a relief option or with a full payment.

Case Study: How CNC Eliminated Over $70,000 for a Client

The W Tax Group worked with a client facing around $100,000 in tax debt. The IRS had escalated its collection notices, and the client faced an imminent tax levy after receiving IRS Letter LT11. This taxpayer was at risk of bank seizure and wage garnishment because of their high-balance tax debt.

Our firm quickly secured collection holds to protect the client’s wages and assets. After a thorough case review, we decided to pursue CNC status. The collection period expired on a significant portion ($70,000) of the tax debt, meaning the client never had to worry about repaying that amount. The CNC status also protected the client from IRS collections on the remaining $30,000 debt. 

Talk to our tax attorneys about this strategy and how it may work for you.

Other IRS Hardship Relief Options Beyond CNC

If you aren’t experiencing financial hardship that would qualify you for CNC status, you have other tax debt relief options. The IRS may agree to one of these arrangements:

Installment Agreement

If you can make monthly payments, you can request an installment agreement to pay off your debt over time. These are easy to request online, and most taxpayers qualify.

Partial Payment Installment Agreement

This is another option that considers your CSED. Basically, partial payment agreements allow you to pay a lower monthly payment amount until the CSED passes, and then you won’t have to pay off the rest of the balance after that time.

Offer in Compromise

Offers in compromise are settlement options. If the IRS reviews your finances and tax debt and doesn’t expect to be able to collect from you, they may accept your offer for a lower payment to satisfy the debt. These requests can be complicated, so talk to a tax attorney first.

Penalty Abatement

Is a large portion of your debt IRS penalties and interest? If so, consider penalty abatement. You could qualify if you don’t have any tax penalties in the last three years or if you have reasonable cause for missing a tax payment.

All of these options require filing compliance – if applicable, we’ll help you file back taxes before we apply.

When to Hire Legal Help for IRS Hardship Relief

You should definitely reach out to a tax attorney when you’re dealing with one or more of these situations:

• You owe significant tax debt that you can’t afford.
• You can’t afford to make monthly payments.
• The IRS is threatening enforcement with notices.
• You have several years of unpaid taxes.

Why Choose The W Tax Group

If paying your taxes would cause financial hardship, The W Tax Group is here to assist you right away. Our experienced team of attorneys has dealt with numerous CNC status cases. Here are a few good reasons to choose our firm:

• Our tax resolution firm is focused exclusively on IRS problems. 
• Our tax attorneys have many years of experience handling hardship and CNC cases.
• We provide customized, proven strategies to protect you from collections.
• We assist both individuals and businesses across the nation. 
• We focus on long-term outcomes so the problem doesn’t keep happening.

Contact The W Tax Group to learn more about how our experts can help you.

FAQs About the IRS Hardship Program

What is the IRS hardship program?

The IRS hardship program refers to currently not collectible (CNC) status. This is a temporary hold on collections while you are dealing with financial hardship that inhibits you from paying your tax debt. Once your financial situation changes, collections begin again. 

How can currently not collectible status help me?

This status protects your assets from being seized by the IRS. If you wait out the CSED, which is 10 years, and your account stays in CNC status, the IRS will no longer be able to collect your remaining balance.

Can my tax debt expire while I’m in CNC status?

Yes, the CSED is 10 years from the tax assessment date. If that period passes while you’re in CNC status, the debt would expire.

How long does CNC status last?

There is no set time limit for CNC status. But once your financial situation improves, the IRS will expect you to set up payments, or collections will begin again. 

Get Relief From IRS Collections with The W Tax Group

Tax debt can quickly lead to escalating IRS enforcement actions. Talk to The W Tax Group right away to avoid levies, liens, or wage garnishments. We can help you request hardship status (CNC status) with the IRS and negotiate on your behalf. Tax relief is still possible, even if you can’t pay your balance right now. 

Set up a confidential consultation with The W Tax Group now.