Tax debt of $26,000 resolved with a Currently Not Collectible status
Tax debt of $26,000 resolved with a Currently Not Collectible status
SITUATION:
A gentleman contacted us seeking our help with his tax situation. He informed us that he had not filed his tax returns from 2004 thru 2006. He stated that he’d claimed too many dependents on past tax returns but he wasn’t sure if that affected the amount that was now owed. He was concerned about not being able to pay the IRS such a large amount. The client thought the tax amount owed was $21,490.00.
INVESTIGATION PHASE:
Our tax team reached out to the IRS and found out that because the client did not file for three consecutive years, the IRS filed on his behalf. This is called a substitute for return (SFR) and when the IRS filed on his behalf they did not include all of his allowed deductions. The IRS only used the information that they found convenient to file the SFR. In addition, the IRS was also including additional tax fees for the year of 2015. All of these updates that the IRS made increased the debt to $26,132.60. This amount owed included interest and penalties. Our tax team was able to identify the status of collection activity and confirmed that there were no threats for liens, levies or garnishments.
The enrolled agent handling his case looked at the client’s financial picture and determined that he could qualify for a Currently Not Collectible status. With a Currently Not Collectible status, the IRS could not collect money from the client as long as he qualifies for the status or when the statute of limitation expires, which is depends on each client’s case. Once expired the IRS has to stop collection efforts.
RESOLUTION PHASE:
Our tax team gathered the necessary paperwork to put together a Currently Not Collectible application. Documents such as proof of income, utility expenses, medical bills and financial statements were gathered and sent to the IRS along with the Currently Not Collectible status request. Our tax team worked very closely with the corresponding case manager and provided additional documents and information that was requested. The case manager approved the Currently Not Collectible status for the client.
The IRS will cease to engage in any collection activity for as long as the client’s financial situation remains the same or until the statute of limitation expires.
CNC was set in place with the IRS as follows:
Total amount owed: $26,132.60
Resolution: Currently Non-Collectible
Settled Amount: $0 collected and will not be reviewed by the IRS unless financial situation changes
Phases worked: Investigation and Resolution
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DISCLAIMER:
This example is an actual example of a client who enrolled in the tax program. Every case is unique and this is not an extension that you will receive the same resolution as they will. Your situation is unique, as are all tax cases. The team has extensive experience, has former IRS employees, special officers, enrolled agents, tax attorney, and CPA’s. Our tax team will work diligently with a flat fee to solve the tax issue you have for the best possible resolution for you. That means doing all possible to ensure you pay the lowest amount of taxes legally required based on your situation, allowable deductions, finances, and other factors.