Case 5: Currently Non Collectible on $22,237.33 in debt
Currently Non-Collectible
SITUATION:
A taxpayer called us for help with his IRS debt of approximately $22,000.00, who had been unemployed for several years. In the initial consultation he stated he owed for years 2013 and 2014 which he did not file. Consequently the IRS filed on his behalf a substitute for a tax return (SFR), this led him to incur a balance. When an SFR is filed the IRS does not take into consideration any deductions, dependents, credits or exemptions that the taxpayer qualifies for.
We proceeded with the Investigation Phase of the program and after a thorough study was completed by our tax team, it was determined that the total amount of tax debt totaled $22,237.33.
INVESTIGATION PHASE:
Our tax team contacted the IRS with the signed Power of Attorney. Once the POA was posted, we requested a master file for the taxpayer including the transcripts and a Stay of Enforcement was approved for 30 days. A Stay of Enforcement halts the collection process for the approved amount of time. Once the investigation was completed, it was determined that the taxpayer was not compliant with the IRS and tax returns needed to be filed for years 2010 & 2012, and years 2013 & 2014 needed to be amended. until the returns were filed.
COMPLIANCE PHASE:
During this phase we filed and amended the mentioned years. Given taxpayers hardship and after we completed taxpayer’s financial analysis, the tax team recommended placing the account on Currently Not Collectible status, as the taxpayer was not able to afford any payments. While the account is in CNC status, the IRS will not generally engage in collection activity and as long as taxpayer’s financial situation remains the same he won’t have to proceed with monthly payments.
RESOLUTION PHASE:
After the taxpayer agreed that we proceed to set him up in CNC status, the tax team contacted the IRS with proof of monthly expenses and financial information. The IRS then requested more documents and they were submitted in a timely fashion. After we provided all the requested proof, the account was approved by the IRS manager to be placed in CNC status. compliant with the IRS.The taxpayer will remain in that status until his financial circumstances changes and is able to make payments or until the debt expires. He must remain
CNC was set in place with the IRS as follows:
Total amount owed: $22,237.33
Resolution: Currently Non-Collectible
Monthly Payment: $0.00
Phases worked: Investigation, Compliance, 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.