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Tax Defense Network: Currently Not Collectible Facts

March 15, 2012

Many times taxpayers come to Tax Defense Network for a solution when they are unable to pay back their tax debt due to insufficient income or other circumstances. While they intend to pay their taxes, they cannot. Tax Defense Network has helped some taxpayers reach an agreement with the IRS where the IRS puts their accounts under “currently not collectible” status.

Tax Defense Network: What Is Currently Not Collectible?

As its name hints, Currently Not Collectible is the IRS program where the IRS reports an account uncollectible due to various reasons. Some of the common reasons are:

  • A taxpayer is unable to pay back taxes presently due to financial crisis.
  • Partial expiration of the assessment prior to issuance.
  • Complete expiration of the statutory period for collection where a taxpayer can pay, but taxes cannot be collected because the taxpayer resides in a foreign country.
  • A company is liquidated in bankruptcy.
  • Inability to locate the taxpayer.
  • Inability to contact a Single Member Owner who is liable for taxes assessed and there are no means to enforce collection.
  • Death of a taxpayer with no collection potential.

How Tax Defense Network Works Out the Solution

We work with the IRS and our client to put the status of their account as Currently Not Collectible by providing documentary evidence on behalf of our client that convinces the IRS of the authenticity of the case and the need to stop all collection activities against that taxpayer. Some of the documents that a taxpayer needs to provide to the IRS include:

  • Recent pay-check stubs of the current/recent job.
  • Most recent statements of all monthly income from all sources.
  • Real-estate bill for all property owned.
  • Recent lease or mortgage statements stating your monthly rent or mortgage payment.
  • Details of all utility bills.
  • Recent statement for any and all credit cards.
  • Personal property tax bill details for the car(s) you own along with mileage and monthly payment for the car(s).
  • Proof of assets you own such as bonds and stocks.
  • Proof of monthly expenses on food, clothes, medical expenses, child support and other necessities.

As soon as an account has been put under Currently Not Collectible status, the IRS stops all collection actions currently against the taxpayer. The tax professionals at Tax Defense Network study the case, choose the best program of the IRS that works in favor of the client, choose the documents that will best support the argument, and negotiate with the IRS to get the client under Currently Not Collectible. We responsibly do not guarantee results before studying a case.

The IRS continues to monitor your financial situation every year to see when you will be able to pay back the tax debt. We provide assistance to our clients after they have been put under Currently Not Collectible by providing updated financial statements every year. Tax Defense Network has contributed in making many taxpayers’ lives stress-free. If you think you qualify for Currently Not Collectible and need help, you can call Tax Defense Network on our toll-free number: 888-248-9058.

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