Currently-not-Collectible

Tax Liability Doesn’t Have to Create Undue Hardship in Your Life

You may qualify for the “Currently Not Collectible” program if you are facing economic hardships while also experiencing IRS collections actions. This is a program that will stop all IRS collection action until a time when your economic situation improves.

There are no strict requirements for qualifying for this program, and anyone who feels that they will be unable to pay a debt to the IRS should consider filing for it. The following are a few common reasons why a taxpayer may be approved for the currently not collectible program:

  • Loss of Employment
  • Significant Decrease in Pay
  • Serious Illness (typically causing the inability to work)
  • Inability to meet other necessary monthly expenses
  • Access to limited assets and equity that could be used to pay the debt

The length of time that you can remain in the currently not collectible program is only limited to the time period in which you actually qualify. Once in the program, the IRS will occasionally review your situation to see if your economic circumstances have changed. The IRS may revoke your eligibility if changes have occurred, such as obtaining new employment, returning to work after extended leave, receiving a raise or promotion, receiving an inheritance, or recovering from a significant illness.

For many taxpayers, qualifying for the currently not collectible program is an excellent way to take the pressure off financially. It is often easier to qualify for than other IRS programs and can buy you time to recover from some type of financial problem.  

If you believe the currently not collectible program could be right for you, please get in touch with our attorneys to evaluate your situation and begin the application process right away.