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Florida Tax Attorney > Tampa Currently Not Collectible Status Attorney

Tampa Currently Not Collectible Status Attorney

If you are required to file taxes, you should never avoid filing just because you are concerned that you will owe a substantial amount of money that you will be unable to pay. It is important for individual and business taxpayers to recognize that there are many different options for managing the amount of taxes you owe, and you will always be better off filing on time and working out a solution to get your taxes paid than avoiding a tax required filing. One of those options—if you file taxes appropriately and on time but cannot pay what you owe up front—is something known as “Currently Not Collectible,” or CNC, status.

In effect, “Currently Not Collectible” status is a way to defer your tax payments if you owe money but do not have the assets you would need to pay. If you have questions about deferring your tax payment or need help seeking CNC status, you should seek advice from a Tampa currently not collectible status attorney.

IRS Form 53 and CNC Status in Tampa, FL

If a taxpayer seeks a deferment on tax payments by seeking Currently Not Collectible status, the taxpayer will have an IRS Form 53. Sometimes when the IRS grants CNC status, the deferment is known colloquially as 53-ing the account of the taxpayer.

How can you get Currently Not Collectible status? Generally speaking, you will need to be able to demonstrate that you do not earn enough money to pay for essential costs such as your rent, your bills, and food in addition to making tax payments. If you are able to successfully demonstrate that you do not have the earnings to pay and the IRS puts your account in CNC status, then the IRS will not attempt to take any collection actions against you, including attempts to collect on the tax debt you owe.

Limitations of Currently Not Collectible Status in Tampa

For many taxpayers, Currently Not Collectible status is a lifesaver in that it allows you to go through your day-to-day tasks without having to worry about penalties for unpaid taxes or getting debt collection calls from the IRS. However, you should keep in mind that CNC status is reserved for taxpayers who truly cannot make tax payments without being at risk of losing their home or their ability to pay for necessities. As such, it could ultimately be in your best interest, if the option arises, to seek a higher paying job that will allow you to earn more money and to enter into a payment agreement with the IRS.

There are other limitations of CNC status, as well. Simply because your account has been placed in CNC status does not mean that you do not owe taxes or that you will not have to worry about interest or penalties accruing. To be sure, interest and late penalties do continue to accrue even if the IRS will not be taking collection actions.

Further, the IRS could file a Notice of Federal Tax Lien even if you are in CNC status. And you should know that the IRS may be eligible to keep any federal tax refunds that you are owed until you make arrangements to pay your taxes.

Learn More from a Tampa Tax Attorney

If you have questions about whether CNC status is right for you, a Tampa tax lawyer can assist you. Contact Ronald Cutler, P.A.today.

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