A common choice for tax debt relief is filing for “Currently Not Collectible” status. As an alternative to an Offer in Compromise, it is often seen as the best available choice.
Presently Not Collectible is equivalent to a zero-dollar payment plan.
You can’t afford to pay the IRS even $0 every month, according to their assessment.
The lawsuit is now pending but may be dismissed from the status after a year. It usually simply sits until the loan is no longer owed.
A high tax return income might disqualify it.
When it’s advisable to go with an IRS currently not collectible status
Your salary is within the acceptable range, but the acceptance of an Offer in Compromise may still be contingent on other factors.
Due dates for certain loans are quickly approaching.
Besides, you just don’t want to submit an Offer in Compromise.
In the great majority of circumstances, an Offer in Compromise is the best alternative, and you can only achieve that if you have a Currently Not Collectible Status. Then, unlike waiting for it to run out, you won’t have to worry about it again. The debts of some of our customers are coming due soon, but those of others are not. Putting it in Currently Not Collectible, waiting for the debts to expire, and then presenting an Offer in Compromise is often the best course of action. Lien problems are inevitable as a result of this.
Methods for Becoming Uncollectible at the Moment
Start With This:
Determine whether or whether the IRS is currently handling your case. It’s likely that most readers work for the IRS and are looking into this matter. If you have been accumulating debt for a time without taking any action, your case will likely be in one of three stages:
Nowhere in the archives. Levy’s letter with the final notice was not sent. The Automated Collection System of the Internal Revenue Service has not yet begun garnishments or levies. An irrevocable Notice of Intent to Levy has been published. Your account balance is less than $100,000 (or $250,000 in certain instances). If it has been at least 30 days after the Final Notice of Intent to Levy was given, then you may be subject to garnishment or levy.
Handed over to a Revenue Officer from the IRS. Your tax information will be collected and reviewed by a single IRS agent. Commonly, account balances exceed $250,000.
Step Two:
Include all necessary paperwork with your Form 433F or 433A submission. Where the case is being processed often dictates the form that will be used. Use USPS Certified Mail with a return receipt to communicate with the IRS. Don’t risk losing a letter by sending it through ordinary mail. What you should do is described below, depending on who is in charge:
What You Won’t Find in Any Bookshelves:
Get the necessary paperwork together to accompany your Form 433F. Send it to the address where you regularly file along with a cover note stating that it is Currently Not Collectible.
For the IRS’s Automated Collection System, you may either contact (800) 829-7650 to speak with an agent or ask for a postal address to submit your Form 433F. Put a halt to collection efforts by filing a hold request. There’s a chance they’ll ask you to fax or send in the paperwork for verification purposes.
Officer of Revenue. The IRS Revenue Officer assigned to your case may receive Form 433A and any other supporting paperwork through mail or fax.
