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Can the IRS Do Anything To Me if I Have No Money?
Sometimes taxpayers’ financial situations worsen to the point that they cannot pay any portion of their taxes due because of their present financial condition.
In cases like this, the IRS can mark a taxpayer’s account as “Currently Non-Collectible” (CNC) and any collection activities, like tax levies, are stopped. This is known as Status 53. IRS requirements state that they must receive an update every six months to see if the taxpayer’s financial situation is improved once they are placed in Status 53 (Currently Not Collectible). If you are currently in this situation it may be in your best interest to move forward with an Offer in Compromise.
The IRS requires proof that you have no monthly disposable income or assets before they change your tax account status to Status 53 (Currently Not Collectible). If you have assets that they can seize, the IRS requires proof that seizing these assets will create a severe hardship for you. The proper forms and procedures must also be used to place your file in Status 53 (Currently Not Collectible).
Being in Status 53 (Currently Not Collectible) does not mean the debt goes away. It means that the IRS has determined you cannot afford to pay the debt at this time and adequate information has been provided to warrant your placement into Status 53 (Currently Not Collectible). Penalties and interest will continue to be added to the debt while you’re in not collectible status.
Colonial Tax Consultants’ Tax Attorneys, Enrolled Agents and CPAs are experienced and can quickly determine the likelihood of placing you in Status 53 (Currently Not Collectible) through our free consultation. We are extremely familiar with the requests the IRS will make and know how to move the proper paperwork through the IRS system to get you the protection that Status 53 (Currently Not Collectible) provides very quickly.
To speak with someone about your specific situation to see if you are a taxpayer who is in a position where they can be placed in Status 53 (Currently Not Collectible) to receive immediate protection for any aggressive collection attempts by the IRS, please complete the online request form and we will contact you or call 866-573-3755.
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