Struggling with IRS debt? You may not be aware that the IRS offers a program called Currently Not Collectible Status. This program can provide you with temporary relief from your tax debt while you work to build up the funds to make payment. Read on to learn more about this program and how it can help you get out of debt faster.
Introduction to IRS Debt
If you’re struggling to pay your taxes, you may be able to reduce your debt by using the Currently Not Collectible status. This status allows you to temporarily postpone your tax payments while you get your finances in order.
The IRS may consider you for the Currently Not Collectible status if they believe that you can’t afford to make any payments on your tax debt. To qualify, you must complete a financial statement and provide documentation of your income and expenses.
If you’re struggling with IRS debt, the Currently Not Collectible status may be a good option for you. It can help you catch up on your taxes without having to worry about wage garnishments or property seizures. However, it’s important to keep in mind that interest and penalties will continue to accrue on your outstanding tax debt while you’re in this status.
What is Currently Not Collectible Status?
If you are struggling to pay your taxes, the IRS offers a currently not collectible status. This means that the IRS will not actively try to collect the taxes you owe. However, this does not mean that you do not owe the taxreliefprofessional.com. The interest and penalties will continue to accrue, and the statute of limitations will still apply. If you are able to pay your taxes in full, you should do so as soon as possible.
What are the Benefits of CNC Status?
If you owe the IRS money, you may be able to have your debt classified as Currently Not Collectible (CNC). This means that the IRS will not currently try to collect the debt from you. There are several benefits of having your debt classified as CNC:
- You can get a fresh start. Once your debt is classified as CNC, the IRS will stop any collection actions they were taking against you. This includes wage garnishment, bank levies, and property seizures. This can give you a much-needed fresh start.
- You can avoid interest and penalties. When your debt is classified as CNC, the clock stops on accruing interest and penalties. This can save you a significant amount of money over time.
- You can work out a payment plan. Once your debt is CNC, you can work out a payment plan with the IRS to pay off your debt over time. This can make it much easier to pay off your debt than if you were trying to do so on your own.
- You can get relief from stress and anxiety. Owing money to the IRS can be a very stressful situation. Having your debt classified as CNC can help provide some relief from that stress and anxiety.