I work with many Realtors who fall behind on taxes, and then make mistakes trying to resolve things.
Many jump into monthly payment plans they can't afford, thinking an Installment Agreement is their only option.
To prevent the IRS from filing a Federal Tax Lien, levying their bank account or seizing their stuff, they accept a monthly agreement as their 'fate'.
But then they can't afford the monthly payments, default on their agreement, and end up in worse shape with the IRS than before!
An IRS Installment Agreement is not your only option. Other progams could be better suited to your financial situation, such as...
Currently Not Collectible Status
- CNC is an IRS program designed to help taxpayers in financial hardship
- The IRS agrees to put all enforcement actions "on hold" for up to 2 years
- The IRS agrees to not require any payments from you on your back tax debt during this time
- Which gives you a year or more to get back on your feet financially!
Sounds Good. What's the 'Catch'?
- Recognize that this is a temporary solution and not a permanent fix.
- Though Payments stop, Interest and Penaties continue to accrue, raising your overall debt. It's like sitting still in a taxi cab, but the meter's still running
- Any refunds you would be entitled to during this time are withheld and applied to your tax debt
How do You Achieve CNC Status?
Taxpayers must call or write to the IRS and fully document their financial hardship. It's a simple solution - but not an easy process. Applying for CNC status is quite complicated.
Full financial information will need to be provided to the IRS. The application process is similar to what you'd have to provide to your bank or mortgage lender.
Plus, the IRS may attempt to disqualify you. They'll challenge or limit your monthly expenses because the amounts you report may not fit into IRS National or Local Financial Collection Standards.
They complete disallow other necessary expenses. Watch my new YouTube video for a more complete explanation: Video
Tap a Professional
Currently Not Collectible Status can be a powerful resolution option for you. But gaining CNC status can be tricky.
Are you ready to take on the world’s most powerful collection agency on your own?
Tap on a professional to help you attain CNC status. One who knows the IRS Collection process, plus knows the short cuts and workarounds of the CNC application. One who can help you determine if CNC is really the wise move to resolve your IRS tax problem.
Not all tax pros are created equal when it comes to IRS Representation. Clients come to us after they tried to resolve their IRS problem through their tax preparer or attorney, with little or no success.
Only about 5% of CPAs and Attorneys have interest and/or experience in dealing with the IRS Collection Division. It’s a very specialized area of tax practice, and one I specialize in.
Anchor on this
Though tax troubles may seem overwhelming, it really is possible to put your IRS problem behind you. "There is a time and a way for everythng, even when a person is in trouble" (Ecces 8:6)
If you or someone you know is behind with the IRS, feel free to contact me at 757-346-1040 or jim@anchortaxrelief.com
I've had good success helping taxpayers put the IRS on hold through CNC status. And I can review all your options with you to see if CNC is the best one to end your IRS stress and settle for less.
Jim Flauaus, EA
http://AnchorTaxRelief.com
Comments(2)