Non-Collectables & Statute Of Limitations
There are many situations where life doesn’t make it easy to pay your tax debts. If you are struggling, and barely making ends meet, Alleviate Tax can help. If your wages only cover your necessary living expenses, and you have no assets worth getting levied, we may be able to put you in a status called, “currently not collectible.
Monica V.
Owed $174,885 and was able to save over 100% despite her debt and interest (over $200K with penalties and interest).
Janet E.
Owed $1,200,000 and saved over 99.7% on her IRS period bill.
Sarah K.
Owed the IRS $588K and saved an astounding 99.8% of what she owed.
Looking for information about the Non-Collectables & Statute Of Limitations?
Here’s an Overview
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As Seen & Heard On
Non-Collectables & Statute Of Limitations
There are many situations where life doesn’t make it easy to pay your tax debts. If you are struggling, and barely making ends meet, Alleviate Tax can help. If your wages only cover your necessary living expenses, and you have no assets worth getting levied, we may be able to put you in a status called, “currently not collectible.
Click on the video below to learn more
As Seen & Heard On
How Tax Relief Works
Get Started With A Free Consultation
Speak with one of our tax professionals who can guide you through our process
Phase 1: Investigation (~7 Days)
A dedicated tax professional investigates your status with the IRS or State, then presents you with a detailed report and analysis of your tax status with the IRS or State. We’ll present options and suggest a plan to resolve your tax debt.
Phase 2: Active Resolution (3-9 Months)
Depending upon which programs you qualify for, we partner with you to get your taxes in compliance and achieve the lowest possible resolution for you.
Resolution
You’re back to compliance for the IRS, your state’s franchise tax board, or both! You’re tax debt is resolved.
What People Say About Alleviate Tax
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I was referred to Alleviate by a friend. I had the pleasure of working with an agent named Aime. She was really helpful, patient, professional and knowledgeable when answering my tax questions. Aime was thorough with my paper work. I would definitely refer this tax service to my friends and family too.
Indira Aviles
Alejandro has been exceptionally informative about the upcoming process, regularly checking in, providing updates on my case, and emphasizing the commitment to ensuring everything is handled properly.
Sev Verán
I would recommend coming to Alleviate for any taxing problems that you have. Alejandro was one of the main people to help me through the whole process and guide me along the way. He was very thorough and patient to help me understand the steps needed to take.
Natalie Garcia
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FAQ
What is the Statute of Limitations for Currently Not Collectible (CNC) Status?
The IRS typically has a ten-year timeframe to collect unpaid taxes. However, if your financial situation makes it impossible to pay your tax debt, the IRS may place your account in “currently not collectible” (CNC) status. While this doesn’t erase your debt, it offers a temporary reprieve:
- Collection Efforts Paused: The IRS will stop pursuing collection activities like wage garnishments or levies while your account is in CNC status.
- Statute of Limitations Clock: The ten-year collection window can be paused or even tolled (stopped) entirely while your account remains in CNC status. If the statute of limitations expires while your account is CNC, the debt may become uncollectible altogether.
Important Note: Interest and penalties will continue to accrue on your tax debt even in CNC status.
Alleviate Tax can assess your eligibility for CNC status and help you navigate the process.
What Does it Mean When the IRS Puts You in Non-Collectible Status?
Being placed in “non-collectible” status by the IRS, also known as CNC (Currently Not Collectible), signifies a temporary halt in IRS collection efforts. Here’s what it means:
- Focus on Essentials: If your income only covers basic living expenses, the IRS acknowledges the hardship of collecting from you at this time.
- No Asset Seizure: The IRS won’t seize your assets like your car or home while your account is in CNC status.
- Not a Permanent Solution: CNC status is a temporary measure, and the IRS can resume collection efforts if your financial circumstances improve.
Alleviate Tax can help you understand the implications of CNC status and explore potential long-term solutions for your tax debt.
How to File for Non-Collectible Status?
There’s no formal application process for CNC status. However, Alleviate Tax can help you demonstrate your financial hardship to the IRS:
- Financial Statement Analysis: We can review your income and expenses to create a clear picture of your financial situation.
- Communication with the IRS: Alleviate Tax can handle communication with the IRS on your behalf, effectively presenting your case for CNC status.
- Ongoing Monitoring: We can monitor your account and help you stay compliant with IRS requirements while in CNC status.
Don’t navigate this process alone. Alleviate Tax can guide you through the steps of potentially achieving CNC status.
How Long Does CNC Status Last?
There’s no set timeframe for how long CNC status lasts. The IRS will periodically review your financial situation to determine if you can resume making payments. Here’s what can affect the duration:
- Changes in Income: If your income increases significantly, the IRS may remove you from CNC status and expect you to start making payments again.
- Statute of Limitations: If the ten-year collection window expires while your account remains in CNC status, the debt may become permanently uncollectible.
- Reaching Out to the IRS: Contacting the IRS about your financial situation could trigger a review of your CNC status.
Alleviate Tax can help you understand the factors that can impact your CNC status and advise you on how to maintain it.
Can I File for Non-Collectible Status if I Have Assets?
The IRS considers your overall financial situation when evaluating eligibility for CNC status. While having assets doesn’t automatically disqualify you, the value and type of assets can influence their decision. Here’s a breakdown:
- Essential Assets: The IRS generally won’t consider your primary residence or car when evaluating your ability to pay.
- Valuable Assets: If you own significant assets like a vacation home or expensive investments, the IRS may be less likely to grant CNC status.
Alleviate Tax can help you understand how your assets might impact your eligibility for CNC status and explore alternative solutions for managing your tax debt.
What Happens if the IRS Denies My Request for Non-Collectible Status?
If your initial request for CNC status is denied, don’t despair. Alleviate Tax can help you explore other options:
- Appeal the Decision: We can assist you in understanding the reasons for the denial and potentially appeal the decision to the IRS.
- Explore Payment Plans: Alleviate Tax can negotiate an affordable installment agreement with the IRS that fits your budget.
- Consider Tax Debt Settlement: In some cases, tax debt settlement might be a viable option. We can explore this possibility with you.
Alleviate Tax is your partner in navigating IRS tax debt. We’ll work tirelessly to find a solution that works for you, even if CNC status isn’t initially granted.
