How to Solve Your Tax Problems by Putting Your Account in “Currently Not Chargeable” Status

Internal Revenue Service guidelines state that, in certain circumstances, it is appropriate to place a taxpayer’s account in the Currently Uncollectible status. For example, if the IRS cannot locate the taxpayer, or if the taxpayer dies and there is no potential for estate collection, also, if the taxpayer is a business and can keep up with its tax obligations, but does not have the capacity . to pay against back taxes. Finally, the IRS Policy Manual states that if collecting the liability would create financial difficulties to undo, then the account should be placed in the current uncollectible status. To place the account in “currently uncollectible” status, the IRS will need to verify the taxpayer’s assets and liabilities, as well as income and expenses. After the IRS receives evidence that the taxpayer does not have the ability to pay the account, the account will be placed in the current uncollectible status. This evidence is generally obtained from the taxpayer on the Collection Information Statement, IRS Form 433A. Once the IRS receives this form and supporting documentation, the taxpayer’s account will be coded “currently uncollectible.” At this time, the IRS must stop all collection activities, including liens and wage garnishments.

If you or someone you know has found it necessary to apply for currently uncollectible status to obtain relief from aggressive tax collection actions, then it is important that you contact a qualified tax professional who specializes in resolution. to make sure your case is handled properly, and all your resolution options and taxpayer rights are explained to you in detail.

Completing IRS Form 433A – Your First Step in Solving Your Tax Problem

As mentioned above, IRS Form 433A, known as the collection information statement, must be completed completely. It is essential that all supporting documentation is provided, including bank statements, salary statements, loan statements, business income and expenses, and household expenses. Once all the information is obtained, the tax professional will review it and present the information on Form 433A to the fullest when negotiating with the IRS.

Although Form 433A is the only form that must be completed for the IRS to consider for “currently uncollectible” status, failure to accurately and correctly itemize all requested information, including account numbers, could result in denial and / or payment arrangements that are not affordable to the taxpayer. Therefore, it is highly recommended that the taxpayer consider hiring a qualified tax professional when attempting to place their account in “currently uncollectible” status. A qualified tax professional who is experienced in dealing with the IRS can help you step by step through the process.

You have been granted “Currently Not Collectible” status, now what?

Once the IRS has approved your status, it is important to remember that your tax debt will not be erased. This status just gives you a respite from forced collection activities such as; wage garnishments, bank liens, and asset forfeiture. During this time, the collection statute of limitations of ten (10) years will continue in effect. If you cannot pay all of your tax debt to the IRS within that time, the tax debts will expire.