Orlando Currently Not Collectible Status Attorney
Even if you cannot afford to pay the taxes you owe today, filing them is still the best idea. Once you submit your taxes and agree that you owe the amount stated, but cannot afford to pay, the IRS might put your account in Currently Not Collectible, or CNC status. For those unable to meet their tax burden, the ability to be placed into CNC status could be a financial lifesaver. If you need assistance, please contact an Orlando Currently Not Collectible attorney.
At the law office of Ronald Cutler, P.A., we have over four decades of experience helping clients with all their tax and IRS needs. We can explain what CNC status is, how to request it, how long it lasts for, and more. Contact our office today to schedule a free consultation.
Understanding What Currently Not Collectible Status Is
Being placed in CNC status will provide you some protection against collection or the IRS taking further actions against your assets, like wage garnishments, bank levies, liens, etc. It’s important to understand that when you are placed in CNC, you still owe the money to the IRS. CNC status doesn’t mean you don’t ever have to pay or that you will be exempt from late fees and other penalties.
The IRS Code, Section 5.16.12, discusses the different situations that could qualify your account to be moved to CNC status. Several examples of situations where CNC status may be granted, include:
- When the taxpayer dies, and there is no possibility of collecting from the state;
- Collecting the taxes owed would create a hardship for the taxpayer and leave them unable to cover their basic cost of living expenses;
- When the taxpayer and/or their assets are unable to be located; or
- When the IRS cannot contact a taxpayer, even though they know where the person is located.
You’ll find more scenarios listed in the statute that could qualify someone to be moved to CNC status.
How to Apply for CNC Status?
For those who have tax payments due, but don’t have the financial resources to pay them right now, CNC status could be extremely beneficial. An Orlando tax attorney can walk you through the steps of applying. You will need to have proof that you lack any assets that would allow you to fulfill your tax obligation to the IRS. To prove that, you will need to fill out several forms. One of these is Form 433-A. This form is very detailed and asks a lot of questions. That is why you need an experienced Orlando tax attorney who can help you fill it out.
In addition, you will need to submit proof of your financial situation. That means proof of your living expenses, including transportation and healthcare, and your tax return.
Contact Our Florida IRS and Tax Attorneys
Don’t attempt to apply for CNC status on your own. Let an experienced Orlando tax and IRS attorney help. Contact the law office of Ronald Cutler, P.A. today to schedule a free, no-obligation initial consultation so we can help you work towards obtaining CNC status.