What Is Currently Not Collectible Status?
People have many reasons for not paying their taxes right away. However, some of those reasons aren’t very good reasons, and the IRS won’t stop trying to collect the taxes owed to them.
For instance, if you tell the IRS that you can’t afford to pay, but the reason you can’t afford to pay is because you just went on an expensive vacation, the IRS might not be very sympathetic.
However, some reasons that people can’t pay their taxes are legitimate reasons. For instance, if you lost your job and have no income right now, you really won’t be able to pay your taxes.
If you have a good reason for not paying your tax liability, you might be wondering: What is currently not collectible status?
Understanding What Currently Not Collectible Means
The status of currently not collectible simply means that you don’t have the ability at the moment to pay your tax liability. This does not mean that your tax liability will go away, but it does mean the government might take it easy on you for a while.
If you believe that you qualify for currently not collectible status, you might be able to get the IRS to delay collection efforts for a time. This can be a great relief to taxpayers who are stressed over letters that threaten liens, levies, or other tax collection measures.
Some of these tax collection efforts could make your financial situation worse than it already is. By showing the IRS that you can’t pay your taxes right now, you may be able to get them to agree to delay collection efforts for a while.
There are forms you will need to fill out with the IRS to get them to agree to delay collection efforts. Additionally, the IRS will review your financial situation regularly to make sure that you aren’t delaying their efforts without cause.
Get Help Resolving Your Tax Liability Situation
Now you know what currently not collectible status is. For further information about this status, or about paying your taxes in general, reach out to The W Tax Group today. A free tax liability analysis is yours when you fill out the form below, or when you call 877-500-4930.