Currently Non-Collectible (Status-53)

If you need time before you deal with your IRS problem, we have the solution.

When a taxpayer cannot afford to pay the IRS because his or her necessary household living expenses exceed the amount of available household income, the IRS has the ability to classify that delinquent taxpayer as Currently Non-Collectible. Usually, a financial statement is required to demonstrate that, once all necessary expenses are paid, the taxpayer does NOT have the ability to pay taxes to the IRS. United Tax Group has extensive experience in preparing such financial statements for persons that meet the requirements for Currently Non-Collectible Status.

Typically, the IRS reviews the financial status of each taxpayer in the Currently Non-Collectible status on a periodic basis, usually anywhere from every 6 to 18 months, to see if there has been any change to the taxpayer’s financial situation. If it is determined during this review that the taxpayer’s finances have improved, an Installment Agreement is executed by the IRS and the taxpayer. If the review demonstrates no change, meaning the taxpayer still doesn’t have the ability to pay, Currently Non-Collectible status is renewed until the next financial review.

In fact, when a taxpayer is eligible for a Currently Non-Collectible status, it is generally a good indication that this taxpayer may also qualify for an Offer in Compromise, a program that allows the taxpayer’s debt to be written off permanently.

Contact the professionals at United Tax Group for more information today (877) 829-3703.