Case 3: Currently Non Collectible on $24,000 in debt
Tax debt of $24,000 resolved with a Currently Not Collectible status and $0 collected
An individual contacted us and wanted help with her tax situation. She explained to us that she had filed for bankruptcy and it was completed in 2011. She also told us that she did not file her tax returns for a few years and she was also aware of a balance she had of $15,000 from the 2007 tax year.
Our tax professional contacted the IRS and started the investigation by confirming the amount of taxes owed. Our team learned that the tax amount owed was actually higher. There was more information regarding her case that she was unaware of. The tax debt had increased to $24,735.82. The reason for this increase was due to the IRS filing a Substitute for Returns (SFR) for tax years 2007 and 2008. In other words, the IRS filed on client’s behalf and only used income information and no deductions that client could claim. It was also discovered that she was required by the IRS to file tax returns from 2009 thru 2016. The client did not have any threats or collection activity from the IRS such as liens or levies. The case was not pending to be assigned to an IRS collection agent which would give us sufficient time for our tax team to get client tax compliant (i.e. file the necessary tax returns).
The IRS would not accept a resolution until she had filed all the tax returns as requested. Our tax professional filed the tax returns from 2009 to 2016 just like the IRS required. Our enrolled agent also revised the years that the IRS filed on client’s behalf. By doing this, we would be sure that all allowed deductions were included on all of her tax returns. This would really maximize her tax savings. Once this was completed, our tax professional would review the investigation on her tax situation again and find a solution to the tax debt.
Since she was in a difficult financial situation to make payments it was recommended that we submit a Currently Not Collectible status request to the IRS. A Currently Not Collectible status would halt any collection activity and she would not be required to many any payments towards the tax debt. She would remain in this status as long as her financial situation remained the same or when the statute of limitation expires, which depends on each client’s case. Once expired the IRS has to stop collection efforts.
Our tax professional gathered all the necessary documentation as evidence to proof the client’s financial . The case was assigned to an IRS examiner who approved the Currently Not Collectible and client paid $0 to the IRS.
CNC was set in place with the IRS as follows:
Total amount owed: $24,735.82
Resolution: Currently Non-Collectible
Settled Amount: $0 collected and will not be reviewed by the IRS unless financial situation changes
Phases worked: Investigation, Compliance, and Resolution
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.