$163,000 IRS Tax Debt Resolved with Currently Not Collectible Status

SITUATION:

A client burdened with $163,000 in IRS debt was facing serious financial hardship, compounded by unfiled tax returns. Due to equity in his assets, he was not eligible for an Offer in Compromise. With the IRS preparing to enforce collection actions, he urgently needed a resolution that would stop enforcement and provide immediate relief with no required payments as long as his financial situation remained unchanged.

INVESTIGATION PHASE:

Our team conducted a comprehensive review of his finances, including income, debts, and necessary living expenses, to demonstrate that he had no ability to pay the IRS.

Key actions included:

• Financial & Hardship Analysis: We analyzed all income and expense data to clearly establish his inability to make payments.
• Strategy Development: Determined that Currently Not Collectible (CNC) status would provide the best path for immediate relief with $0 required payments.
• Documentation Collection: Gathered and organized supporting records to present a strong case for financial hardship.

Throughout the process, we guided the client step-by-step, ensuring he understood documentation requirements and timelines.

COMPLIANCE PHASE:

All unfiled tax returns were completed and submitted, bringing the client into full compliance with IRS requirements—an essential step for securing any form of tax relief.

RESOLUTION PHASE:

We presented the client’s financial hardship to the IRS, requesting Currently Not Collectible (CNC) status. After review, the IRS approved the request.

Case Outcome:

• Total Amount Owed: $163,000
• Resolution: Currently Not Collectible (CNC) Status
• Phases Worked: Investigation, Compliance & Resolution

This resolution stopped all IRS collection activity, including levies and garnishments. The client is not required to make any payments to the IRS as long as his financial situation does not improve. With $0 monthly payments, he now has the breathing room to regain stability without the constant pressure of IRS enforcement actions.

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DISCLAIMER:

This example reflects a real client outcome. Every case is unique, and results may vary. Enrollment in our program does not guarantee a similar resolution. Our experienced tax team—which includes former IRS employees, enrolled agents, tax attorneys, and CPAs—works diligently to achieve the best possible outcome for each client. Our goal is to ensure you pay the lowest amount legally required based on your individual circumstances, finances, and allowable deductions.