Out of Work Due to Covid and Owe Tax Debt?
If you are out of work due to covid or other illnesses and bringing in no income and you owe the IRS money you want to let them know as soon as possible by filing as debt currently uncollectible. This should be done through a tax attorney to ensure it is done properly.
It is very easy to let finances slip as unimportant when you are sick. The truth is that the IRS collection machine stops for no one unless they are made to. If you have collection notices coming to you already it needs to be dealt with so that the situation doesn’t become worse. When you are ill the very last thing you need is more stress on top of it.
You may qualify for a status of Currently Non-Collectible
Your tax attorney will talk with you to determine if you are eligible for a CNC status. After an evaluation of your financial situation is conducted, if it is found that you do not have sufficient income or assets to pay off any of the debt, you will likely qualify.
Once you are placed in the CNC status, they can no longer collect money, seize property or assets from you. When your financial situation improves, you will have to start paying off the debt or the IRS will begin the collections process against you. Until that time though this is a literal freeze on your account with the IRS. This can help you gain some peace of mind knowing the collection efforts will stop.
It is also important to note that there is a statute of limitations of 10 years for all tax debt. If you are unable to become financially stable throughout the 10 years, the IRS will not collect and your debt will be forgiven.
Just because you were granted CNC status does not mean you are free from paying your tax debt. Penalties and interest will accrue while you are in a CNC status. Every two years, you will be asked to provide updated financial information to the IRS to determine current eligibility.
Naples tax relief attorney Todd D. Babbitt knows the qualifications for you to get CNC status. He will review your situation and see if you are eligible for CNC. If you are not eligible, he will find another way for you to pay off your tax debt.
Financial hardship is not easy especially when you are ill. Consultations can be done via phone or video as well. Let us fight for the chance to gain some breathing room with paying off your tax debt until your situation improves. Call Babbitt Tax Law today to get a free consultation to see if you are eligible for the CNC status. 239-300-9492. www.babbitttaxlaw.com