Many taxpayers are unable to pay their tax debt for a variety of reasons including simply not having the money to do so. Currently Non-Collectible Tax Status (or CNC) may be a potential solution for individuals facing such a situation. The IRS places the accounts of such taxpayers in CNC status if they can prove that clearing the unpaid taxes will lead to “economic hardship”. The onus of proving this to the IRS, however, is on the taxpayer, and the IRS will not go ahead and flag an account as CNC, unless requested. Enlisting the help of skilled tax attorneys, like those at the Law Offices of Nick Nemeth, can be essential in building a strong case for CNC status, ensuring that all necessary documentation is accurately presented. Their expertise can increase the likelihood of obtaining relief from immediate collection actions and provide much-needed breathing room during financial hardship.
While “economic hardship” is one of the primary reasons, there are certain other reasons for which the IRS may place an account in Currently Non-Collectible status. Here are some of the other reasons the IRS may place an account in CNC status:
The IRS grants Currently Non-Collectible status only to qualified taxpayers, thus detailed financial disclosures are generally required. If you are planning to request CNC, the tax professionals at the Law Offices of Nick Nemeth can help you determine whether you meet the criteria and help prepare the extensive list of documents generally required to support the request. If the IRS accepts the request for CNC, the agency stops trying to collect your outstanding tax debt.
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We are proud to announce that Nick Nemeth, the founder and driving force at The Law Offices of Nick Nemeth, has been recognized as the "IRS Tax Lawyer of The Year" in the USA, by the prestigious FM Taxation Awards, validating his unwavering commitment to providing exceptional IRS tax representation and advocacy.
Whether dealing with IRS audits, tax liens, wage garnishments, or other tax controversies, our firm is dedicated to protecting your rights and helping you achieve the best possible outcome.
We are honored by this recognition and remain committed to delivering the highest standards of legal service for all your tax-related needs.