If you’re experiencing severe economic hardship—in other words, you really can’t pay the IRS anything—and still owe taxes, your debt may be deemed “currently not collectible.”
Without disposable income or resources to pay tax debt, Apex Tax Defense may be able to qualify you for this CNC option, which halts all collections activities.
Once your account is in CNC status, the government typically won’t garnish your wages or come after your assets with liens or levies. However, the government can come after you again later on down the road.
Trying to assess whether or not you would qualify for CNC status is best done in partnership with an expert like Apex Tax Defense, since such negotiations can be tricky. Interest and penalties, for example, can continue to grow while in CNC status. On the other hand, the IRS typically won’t go after an asset if you don’t have 20 percent equity in it, or if the cost of seizing it is more than it’s worth.
Once a CNC status is granted, the IRS will generally leave you alone for months or years. However, it may reopen your case at any time, and often revisits it every couple years, if you owe additional taxes, sell assets or increase your income. There is a ten-year Statute of Limitations for back taxes owed, after which the tax debt is forgiven.
If you’re in a financial situation tough enough that you may qualify for Currently Not Collectible status, you still have plenty to gain—or lose. Talk to Apex Tax Defense and we’ll fight aggressively for you, and give you the straight truth.