One of the most common choices for tax relief cases is the status of Currently Not Collectible. Many people believe it to be the second-best choice after an offer of compromise. A currently not collectible status is effective in a payment plan for$0. Your capability to pay the IRS is deemed to be calculated at $0 per month. The case is in status but may be removed after a year. When a debt expires, it frequently just sits there. High income can disqualify a tax return.
When the greatest selection is Currently Not Collectible?
- Your income numbers are sufficient, but if you have assets or other factors, your offer in compromise may not be accepted.
- Some debts are close to expiring
- The offer in compromise is not your best option for other relevant reasons. For most cases, should you be eligible for currently not collectible status, you will also be eligible for an offer in compromise. It is usually the best resort for most cases that qualify.
Instead of merely waiting for it to expire, you will then have truly finished with it. The majority of people have debts that are about to expire, while others do not. Often, the best course of action is to put the debt in the category of “Currently Not Collectible,” wait until it expires, and then submit an offer in compromise. There are some lien concerns as a result. Dealing with tax obligations can be daunting and scary as most of the time it can affect not only the finances but the entire life. as you know, IRS can be heavy handed when it comes to tax obligations. However, IRS is also considerate of your situation and that’s why it gives you options to settle your tax debts. This article aims to explain all your possible options.