There are times when you acknowledge that you owe the IRS money but are unable to pay due to your financial circumstances. Your account may be placed in the status of Currently Not Collectible (CNC) if the IRS agrees that you are unable to pay both your taxes and basic living expenses.
The IRS will typically not attempt to collect from you while your account is in CNC status. However, the IRS may keep your refunds and apply them to your debt, as well as continue to charge interest and penalties to your account. In accordance with the law, you will also continue to receive an annual bill from the IRS.
The IRS may ask you to file any tax returns that haven't been filed in a while before it puts your account in CNC status.
In most cases, the IRS may request financial information from you in order to evaluate your income and expenses and determine whether you are eligible to sell any assets or obtain a loan if you request CNC status.
When they review your income each year, the IRS may be able to collect the balance you owe if your financial situation has improved.
Up to ten years after the date your taxes were assessed, the IRS can try to collect them. In some cases, the ten-year period might be suspended by the IRS. The suspension will extend the time the IRS has to collect the tax.
Even if it stops trying to collect the due balance, the IRS will not stop charging interest and penalties.
If you owe the IRS and the stress is keeping you awake at night, contact me. I will deal with the IRS for you to resolve your IRS problem.
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