Florida Client’s $25,000 IRS Debt Placed in Currently Not Collectible Status

SITUATION:

A Florida client, struggling with a serious health condition, came to us burdened by $25,000 in IRS tax debt. With only disability benefits as her source of income, she was under significant financial and emotional stress. Her primary concern was stopping IRS collections so she could focus on her health and recovery without the constant threat of enforcement actions.

INVESTIGATION PHASE:

Once enrolled in our program, we welcomed the client and immediately began reviewing her financial situation in detail. Our team guided her through the process of gathering key documents, including proof of income, medical hardship records, and a full expense breakdown. This allowed us to build a complete picture of her financial limitations.

Key actions included:

• Financial & Hardship Assessment: We carefully reviewed her disability income and necessary living expenses, confirming that she had no disposable income to apply toward IRS payments.
• Medical Documentation: We collected records of her health condition and treatment, strengthening the case for financial hardship.
• Strategy Planning: Based on her situation, our team determined that Currently Not Collectible (CNC) status was the most effective solution to temporarily suspend IRS collection activity.

Throughout this phase, we maintained close communication with the client, ensuring she felt supported and informed at every step of the process.

COMPLIANCE PHASE:

In this case, a separate compliance phase was not required because the client was already current with all tax return filings. This allowed us to move directly into resolution.

RESOLUTION PHASE:

We submitted a comprehensive request to the IRS for Currently Not Collectible (CNC) status, supported by financial documentation and medical evidence. After review, the IRS approved the request, placing the client’s account in CNC status.

Case Outcome:

• Total Amount Owed: $25,000
• Resolution: Currently Not Collectible (CNC) Status
• Phases Worked: Investigation & Resolution

This resolution immediately halted IRS collections, meaning the client is not required to make any payments as long as her financial and medical situation remain unchanged. The outcome provided her with peace of mind, financial relief, and the ability to focus fully on her recovery without the constant pressure of IRS collection 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.