It is not uncommon to face difficulties when making tax payments. In fact, even huge companies have a hard time keeping up with tax payments. If it happens to you, you can file for IRS currently not collectible. With this status, you can defer making payments to the IRS until you are financially capable of paying.
What Is The Current Not-Collectible Status?
- It is a privilege given to those who cannot afford to make payments on their tax obligations.
- You must be able to prove to the IRS that you are in financial difficulty.
- The non-collectible status is not permanent. You will be subject to review and if your situation changes, you will start to pay your tax due.
- You are earning money, but there’s nothing much left to you after deducting your living expenses such as food, utilities, and rent.
- You should contact a tax professional or the IRS to know if you qualify for not-collectible status.
To qualify for not-collectible status, you should speak to a tax professional or, better yet, get in touch with the IRS to discuss all your options. You will also need to provide all the necessary information, such as your income and expenses, along with proper documentation. Do not lose hope. If for some reason you don’t qualify for currently non-collectible status, do not lose hope. You can still qualify for an installment agreement. It can somehow make your tax payments more manageable.
Again, this is a privilege given to people who have a hard time paying their tax debt. It is not a ticket to ignore or set aside your tax obligations. The IRS is powerful and can garnish not only your salary but your bank account too. For unpaid taxes, you need to be proactive in dealing with your tax obligations.