IRS Currently Not Collectible

The IRS will consider a taxpayer’s current financial situation when determining whether they should be required to make payments toward an outstanding tax debt. If a review of the monthly household income and expenses of the taxpayer suggests that they do not have excess monthly income and making a payment to the IRS would cause a hardship, the IRS will allow their account to be placed in not collectible status. While in not collectible status, the IRS will not pursue enforcement action such as bank levies or wage garnishment, the statute of limitations continues to run (tax liabilities generally expire after ten years), and the taxpayer is not expected to make any payments toward the debt for a period of at least two years. After this time, the IRS may periodically review the account and the taxpayer may be required to start making payments if their circumstances have changed.

irs currently not collectible

The attorneys at Segal, Cohen & Landis have extensive experience working with Appeals Officers, Revenue Officers and Collection Agents and understand how the IRS will interpret a taxpayer’s financial information.  We do the financial analysis with our clients to determine whether they are candidates for currently not collectible status and work with them to obtain the necessary supporting documents to successfully establish the resolution.   We have obtained not collectible status for thousands of clients even when they have had significant equity in assets and/or have historically been high income earners.

Click here to see our most commonly asked questions and a video where senior partner, Samuel Landis, answered those questions in a recent interview with Haute Lawyer.

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