Landmark Tax Group

Uncollectible Tax Relief in Santa Monica


What to Know About IRS Uncollectible Status in Santa Monica

What is an IRS uncollectible account? If you owe back taxes to the Internal Revenue Service, the agency will attempt to collect the debt by taking your assets and income. If, however, the IRS decides you cannot pay your tax liability due to a financial hardships situation, they will issue a provision hold on collection and move your tax case into a status called “currently-not-collectible”, or CNC.

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

Interest and penalties continue to accrue while cases are in not-collectible status. Furthermore, the Collection Statute Expiration Date (CSED) stays open, permitting the IRS to reopen your case if they feel your ability to pay the back taxes has improved. It is routine for the agency to set a follow up date of two (2) years from the date your tax liability was moved into uncollectible status. If, after the follow up review by the IRS, your income has not increased, your case will again be placed into not-collectible status.

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

When it comes to back taxes, IRS agents and officers are responsible for collecting as much of the tax as possible. Their procedure involves a determination of the taxpayer’s ability to pay based on a  review of their monthly income and allowable expenses. You may qualify for a not-collectible case resolution if your monthly allowable expenses equal or exceed your income, and there are no assets from which the IRS can collect.

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

If you need help with uncollectible tax relief in Santa Monica, contact us today at 1-714-382-6780 for a complimentary, private consultation with experienced Santa Monica CPAs, enrolled agents, and tax attorneys.

See all Santa Monica Tax Relief services