Naples Currently Not Collectible Attorney
Many individuals and businesses avoid paying taxes when they know that they are likely to owe a significant amount of money. Yet avoiding your taxes is not the answer. You will always be putting yourself in a better position if you file your taxes and work with a lawyer to determine how you will pay what you owe and what options may be available to you. You may be eligible to defer your tax payments if you work with an attorney to ensure that your taxes are filed on time and you seek what is known as Currently Not Collectible status. Sometimes this status is known in brief as CNC status. A Naples currently not collectible attorney at our firm can speak with you today about your circumstances and your eligibility for deferring tax payments lawfully.
What is Currently Not Collectible Status
Currently Not Collectible status is a status given by the Internal Revenue Service (IRS) after a taxpayer files IRS Form 53. Filing IRS Form 53 will not automatically confer Currently Not Collectible status, however. In order to receive a deferment on paying the taxes you owe, you will need to provide proof that you have insufficient earnings to cover necessities while also making your tax payments.
When a person can successfully show that she or he has insufficient earnings to make tax payments on what is owed, the IRS can give you Currently Not Collectible status, which will put a hold on any attempts by the IRS to collect on your tax debt.
Benefits and Limitations of Currently Not Collectible Status
There are both benefits and limitations of Currently Not Collectible status. This status can give you peace of mind concerning debt collection and being behind on paying the tax debt you owe. In other words, you will not need to live in fear of debt collectors or the federal government taking legal action against you to collect your tax debt. However, there are also disadvantages of CNC status, and in some cases it could make more sense to work out a payment plan with the IRS.
When your taxes are deferred due to CNC status, the IRS may be able to retain any tax refunds you are owed and may still be able to file a tax lien. Further, interest on your tax debt will accrue, and you will be responsible for any associated tax penalties.
Contact Ronald Cutler, P.A. for Assistance
Do you already know that you will owe taxes you cannot pay, or are you concerned about the options that may be available to you to manage or defer taxes? Our firm has years of experience serving clients in Florida with a range of tax issues, from individuals to businesses. We know how critical it is to have control over your tax situation, and we can work with you to make sure that you choose the option that is best suited to your needs. A Naples currently not collectible attorney at Ronald Cutler, P.A. can begin working with you on your tax situation today.