Landmark Tax Group

Uncollectible Tax Relief in Costa Mesa


What to Know About IRS Uncollectible Status in Costa Mesa

What is an IRS uncollectible account? If you owe back taxes, the IRS will look to your income and assets as a means of collection. However, if the IRS determines that you cannot pay your back taxes due to a financial hardship, they will issue a temporary hold on collection and place your account in “currently-not-collectible”, or CNC, status.

If my back taxes are placed in uncollectible status, do I still have to pay?

While your back taxes are in CNC status, penalties and interest will continue to accrue. Furthermore, the Collection Statute Expiration Date (CSED) remains open, allowing your case to be reopened by the IRS if it is deemed that your ability to pay has improved. In almost all cases, the IRS will follow up on your uncollectible case two years from the date your back taxes were placed in uncollectible status. If you still can’t pay the  back taxes upon review by the IRS, your case will again be categorized as an uncollectible account.

How do I get my IRS back taxes into uncollectible status?

IRS employees are responsible for collecting as much money as possible from taxpayers with back taxes. Part of their procedure is to find out how much a taxpayer can afford to pay by examining a taxpayer’s monthly income and allowable expenses. If your allowable expenses equal or exceed your income, and there are no assets from which the IRS can collect, you may be eligible for a not collectible tax resolution.

See: 11 Tips For Taxpayers Who Owe Money To The IRS

If you need help with uncollectible tax relief in Costa Mesa, contact us today at 1-714-382-6780 for a free, confidential consultation with experienced Costa Mesa CPAs, enrolled agents, and tax attorneys.

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